He calls Bob Hugin's claims "lies."
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Menendez appeared at a county Democratic office in Hackensack on Wednesday to respond to the new minute-long spot.
The allegations first surfaced when Menendez ran for re-election in 2012. They stem from an anonymous tip to an ethics watchdog and the FBI.
Prosecutors eventually charged Menendez with corruption for his dealings with a Florida eye doctor who is his friend. But the federal case was dropped in 2018 after a mistrial.
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Hugin has called attention to the corruption case in other ads, and the race is now closer than expected.
A Democratic Super PAC said Tuesday it is now pumping $3 million into TV ads to help Menendez.
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