I had a different situation, but the story might be of some use.
A female co-worker who was totally nuts was telling others that I had been making life-threatening phone calls to her at her home. (You just have to take my word for it this was 100% bogus and unprovoked. I think she was seeking attention and my name was convenient.)
This became quite a topic and a few people thought I must be doing something horrible. The rumor mill caused me quite a bit of stress.
I let it be known to the office that I had employed an attorney to investigate and sue her or anyone who participated in this slander, even by simply repeating it. This was bogus, I had not even called an attorney. I just thought it sounded good to say so.
The word got around the office very fast and the problem was fixed in hours.
Bumper sticker: Wherever you go, there you are
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"...even the truth, when believed, is a lie. You must experience the truth, not believe it." Werner Erhard
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