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Wollersheim sued the Church of Scientology in 1980. The story of Xenu was made public when Church materials detailing the Operating Thetan Level 3 were used as exhibits. In Wollersheim's court case Scientology's "top secret" materials about Xenu and their beliefs in past alien invasions of Earth was filed with the LA court on his behalf and then copied from court records and published by media all over the world.
Wollersheim helped co-found Factnet.org in 1993, an organization whose stated goal is to help other victims of cult abuse. He is current a director of Factnet.
In 1986, a jury awarded Wollersheim $5 million in compensatory damages and $25 million in punitive damages for what jurors called intentional and negligent "infliction of emotional distress." On appeal this was reduced to $2.5 million. Scientology officials vowed never to pay, and the phrase "not one thin dime for Wollersheim," was chanted by Scientologists at court hearings. The church challenged the $2.5 million award, but the case was dismissed and Wollersheim was awarded an additional $130,506.71 in attorney's fees.
On October 28, 2005 the Metropolitan News-Enterprise, a Los Angeles daily legal publication, reported that the Wollersheim case was ongoing and a trial was forthcoming regarding the claim. It said that his attorney had received $100,000, but she was suing for more. On December 8, 2006, Wollersheim won the case on appeal, as the plaintiff lacked an enforceable lien under the Rules of Professional Conduct.
- s:Wollersheim v. Church of Scientology
- Ex-Scientologist Collects $8.7 Million In 22-Year-Old Case, Richard Leiby, Washington Post, May 10, 2002; P. A03.
- s:Church of Scientology v. Wollersheim
- Ortega, Tony (2008-06-30). "Scientology's Crushing Defeat". Village Voice. Archived from the original on 2008-07-09. Retrieved 2008-06-30.
- Grace, Roger (28 October 2005) "25 Years Later, a High-Profile Superior Court Case Is Still on the Active List Archived 2005-12-15 at the Wayback Machine" Metropolitan News-Enterprise
- C.A. Rejects Attorney's Lien Claim in Scientology Case, Metropolitan News-Enterprise, December 8, 2006
- Affairs, Bureau of National. 1995. The United States Patents Quarterly: Associated Industry Publications.
- Net.wars Wendy Grossman; NYU Press, 1997 page 83