Sorta, IANAL but that would put them into perjury territory which is a huge deal if they get caught. How likely that is depends on how smart they are, but its quite possible. For example, if any of the customers didn't pay in cash thats going to leave a paper trail.
Or has a receipt, or knows some people who could be witnesses for it, or lots of other possibilities. Filing bogus lawsuits is a tried and true intimidation tactic, but perjury is just dumb.
