Call a local newspaper and talk to one of the reporters. Name the woman and her attorney. Man, they would kill to write a story on something like this. It almost writes itself.
See if the attorney still wants to sue you in the light of day.
Genius idea, and actually is probably your best card in this situation.
I will be honest, this whole situation doesn't surprise me!
I have a similar story:
2 1/2 years ago there was a bomb threat to the business I worked out. I was told to check out the perimeter and look for suspicious bags. I found one in the alley, asked security what to do and they told me to call it in. I did, and cops came immediately. The whole zone was evacuated including the municipal building which was right around the corner.
Police brought me to the station, introduced me to a detective in homicide who then tried to convince me to "admit" to having done the act, putting the bag there myself, and calling it in. 8 hours later I was still there telling them I hadn't done it. An hour after that, they put their robots to work and put the suspicious bag in a pressure unit, creating a contained explosion.
The bag had a set of clothes, shoes and some lady's purse.
Even after this, they were trying to get me on federal charges of a bomb threat (real or NOT), because they STILL thought I put it there. I was let go when my business' attorney found out. That night they arrested a bum for getting in the way of the bomb squad, so they eventually arrested SOMEONE, which is all they were going for in the first place.
I thought to myself afterward, what if I found that bag and didn't call it in, and it actually was a bomb? If I knew it was a lose-lose situation the whole time, I don't know what I would have done.
