Might be denied since he filed the false report. Stupid thing is, it would have been covered otherwise (assuming he has collision) as you can give anyone permission to drive - even if they’re unlicensed. Now, keeping your policy after that may be a different issue.
I think the problem the SUV owner is going to have is that he is besmirching the reputation of all the kids. Just read this thread and see all the references to “car thieves”, etc. Somebody in one of those kids’ families is going to finally get p.o.’d enough to speak up.