I wasn't aware that one could "sue Hollywood" over a film that is considered unrealistic, but that is exactly what Iranian officials plan to do with Argo. Yes, the real-life drama of this film just won't go away, even weeks following the Academy Awards.
Citing the movie as propaganda that is "pro-CIA" and "anti-Iran," Tehran has hired French lawyer Isabelle Coutant-Peyre to figure out what specific charges to pursue as well as which court to approach. In the meantime, she plans to start an anti-Argo campaign with the intent to block distributors and force them to apologize and admit the film is "a sheer lie." Coutant-Peyre may sound familiar because she also represents "Carlos the Jackal."
Argo's inaccuracies have already been widely discussed, but I don't see this issue to be about mere facts. It's very likely that a generational gap is at play here: the older generation Iranians who went through the 1979 Islamic Revolution seem to have much more issues with the story compared to their younger fellow citizens, who are much more open to other perspectives on what they have been traditionally taught to believe. At any rate, the one thing that should be considered at this point is how Argo is a movie based on a true story--not a documentary film.
Regardless of how this strange lawsuit pans out, it guarantees to cast a negative light upon Iranian officials and their policies towards our universal understanding of imparting and exchanging information, ideas, and art. Their reasoning and harsh reaction alone unfortunately does not seem to cultivate much empathy even for the most reasonable onlooker.
(If you haven't seen it yet, I highly recommend it--the first twenty minutes are incredibly gripping, and it's one of the few films that doesn't seem to lag whatsoever even though we all know how the story ends!)