I don't see this as much a big deal. I think it has everything to do with what the offending party did to you in the first place. Rumours and gossip don't seem like serious offences... but then I don't know the context.
I would ensure that my friend knew the circumstances from my point of view. I would tell them once and then I would let it lie.
If you find that you cannot hang out with someone who hangs out with someone you don't like, get a new friend.
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"My hands are on fire. Hands are on fire. Ain't got no more time for all you charlatans and liars."
- Old Man Luedecke
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