Teacher bullying my child

My daughter (5-years-old) has been having uncharactistic behavior at school. Her teacher emails me at least once a month about her behavior (not listening) and sends me nasty sticky notes in her homework folder "your daughter decided she didn't want to work today so she needs to finish this at home." My daughter really is a sweetheart and wants to do well in school. The other morning she started crying because she didn't want to go. I dug a little deeper and my daughter said she was having a hard time hearing the teacher when the other kids are talking so she guesses what she thought the teacher said and is always in trouble. She didn't feel comfortable telling her teacher and I offered to smooth it over. The teacher responded that she would suggest sitting closer to the front and wearing headphones during individual time. My daughter came home tonight and I asked her how the talk went. She said, "She said I was a liar!!! She said I can hear her just fine and I lied to you!! Why did you tell her that?!?!" I explained that she told me it was okay to tell her teacher and I was trying to help. I asked if she offered solutions to sit closer or wear headphones. Apparently she just pulled my daughter aside to call her a liar and now my daughter doesn't want to talk to me about it. Additionally, this teacher called her rude last week and made her sit with the "bad kids" while the good kids got to finish reading. I don't know what to do. Anyone else been through something like this?