Mark Latham defamation Osman Faruqi
(Image: AAP/Ben Rushton)

One Nation's New South Wales leader Mark Latham is facing defamation proceedings for tweets he posted about a university student charged (and since released) on terrorism charges, in a case the plaintiff's lawyer says may prompt new legislation against religious hate speech.

Mohamed Nizamdeen was arrested by NSW Police Force last year over an alleged plot to kill then-prime minister Malcolm Turnbull and attack the Sydney Harbour Bridge. He was released without charge after four weeks in solitary confinement treated as a terror suspect, when police found that another man was responsible for the notebook containing the plans. In November, his lawyers announced they would be suing for defamation some of the media outlets that covered the case.