I have been down that road. I used to be Sales manager for a company in Stockton, CA. I was the only male supevisor that worked in the office. A young woman who worked in another department for about a year was fired. She went to the state and filed a claim naming me. This state agency would call me and try to ask questions as if it really happened. Finally I told the State inquisitor that she was offering money from her settelment to anyone who would back her. I quit the company about 6 months later and own my own business working out of my home. It was a nightmare not only for me but for my wife
I can't imagine how stressful that must have been. I know that once a charge has been made, the label tends to stick no matter what the outcome. Good reason why an admonishment not to "bear false witness" is one of the ten commandments. I'm glad your past employer did not settle.