Priscilla Presley is once again setting the record straight about her so-called feud with her granddaughter Riley Keough.

Amid swirling rumors and a new lawsuit, Presley is clarifying that she is in the middle of a dispute — but not with Keough.

“Riley and I have never had a problem,” Priscilla told PEOPLE in a new interview this week. “I just have one battle, and that’s with a certain person.”

She went on to allude to her former business partner, Brigitte Kruse who, along with Kevin Fialko, is suing the star for $50 million, alleging fraud and breach of contract. The pair claim that the widow of rock icon Elvis Presley “pulled the plug” on her own daughter, Lisa Marie Presley, within hours of her being admitted to the hospital as part of a scheme to regain control of Elvis’ estate and defraud her business partners. The lawsuit also alleges tension between Priscilla and Keough following Lisa Marie’s death.

However, Priscilla insists this is not the case. “We’re very close,” she said of her relationship with her granddaughter. “We support each other.”

Jason LaVeris/FilmMagic Priscilla Presley and granddaughter Riley Keough in 2016

Jason LaVeris/FilmMagic

Priscilla Presley and granddaughter Riley Keough in 2016

She added that she has also enjoyed taking on the role of great-grandmother now that Riley and her husband, Ben Smith-Petersen, have two kids together: “I love her babies,” Priscilla said. “I’m really happy for Riley. She’s got an amazing husband and two great children, so I’m happy for her very much.”

She continued, “That’s what makes me happy: knowing everyone is doing well. I feel I’m living a good life.”

Rumors of tension brewing between Keough and Priscilla first arose in January 2023, after the Dallas actress filed a petition questioning the validity of her daughter Lisa Marie’s will, which listed Keough as its beneficiary. That May, Presley and Keough reached an undisclosed settlement agreement.

“Riley is now the executor, which should be right, obviously, being her daughter,” Presley stated after settling with Keough. “Riley and I are on good terms. We were never not on good terms. That was all publicity.”

It was additionally reported that Keough had agreed to pay her grandmother $1 million, plus an additional $400,000 in legal fees, so that she would remain the sole beneficiary of the estate, which includes Elvis Presley‘s Graceland residence as well as the family’s shares of Elvis Presley Enterprises.

Eric Charbonneau/Getty Riley Keough, Lisa Marie Presley, and Priscilla Presley in 2022

Eric Charbonneau/Getty

Riley Keough, Lisa Marie Presley, and Priscilla Presley in 2022

As part of Kruse and Fialko’s lawsuit, an emotional letter from Keough to her grandmother was made public, in which the Zola actress said she was troubled by how quickly Presley sought to settle Lisa Marie’s estate after her death in January 2023.

“I found being called about the will less than 24 hours after my mother passed and getting emails from lawyers before my mother was even buried incredibly heartbreaking,” Keough wrote. “It is really hurtful that after years of me trying to resolve your and my mother’s broken relationship and restore our family, you are taking me, of all people, to court.”

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Since the lawsuit was filed, Presley and Keough have issued a joint statement on the matter, telling PEOPLE earlier this month, “We are aware of the latest allegations from Brigitte Kruse. These claims are not only untrue but also deeply hurtful. Our family is, and always has been, united in love and respect for one another.”

The statement continued, “Our shared priority remains honoring Lisa Marie’s memory and protecting Elvis’ legacy with dignity. We will not allow outside voices to divide us or to diminish the strength of our bond as a family.”

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