The Huffington Post reports on the escalating contention over the  "Stolen Valor Act", which makes it illegal to lie about being a war hero. The Justice Department is attempting to preserve the law after 2 courts ruled that the law is unconstitutional on 1st ammendment grounds. It is now possible that the case will go all the way to the Supreme Court. Many suspect that even if the case ends up in the Supreme Court, the law will likely be struck down because this particular court is skeptical about restrictions on free speech rights, and because the government would need to show that it has a compelling interest to restrict free speech, which, according to UCLA law professor Eugene Volokh, would be difficult to prove in this case.
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To learn more on this topic, take a look at this course taught by  George Freeman:  Prior Restraints: Why Courts Disfavor Limitations on Speech