Do contract workers have rights?

Contract worker for a major company over a year. For 9 months, I was the "whole" dept.. Was offered a full-time position with the company after meeting the required hours. On Wed., agency called, told me assigment was terminated due to "not being into my work the last 2 months". I called supv with a 3rd party on the line & asked, "why". He responsed, "you googled me & showed what you found (Newspaper article on the web) to someone (friend ??) - so this is personal "not" business". I google everyone I interview with. I googled the HR Dir & discovered he wrote a book. Was his actions malicous - giving false statement to agency? What can I do to get my job back? Loved position!