What can I do about a lawyer that has lied?

mariner2 | 23:50 Tue 18th Sep 2007 | Law

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We are currently being threatened with a law suit from a couple of lying individuals that are just trying to make some easy money in the current litigation-happy climate we live in (thanks to the USA)
While I expect THEM to come up with a pack of lies, I was somewhat taken aback when the latest letter from their lawyer also contained half a dozen statements that she herself KNEW were totally untrue.
Is a lawyer allowed to do this?? Our lawyers have told them in no uncertain terms that they've got no case whatsoever, and we haven't heard anything for about 2 months, which brings me to another point - if they and their lawyer realise this, are they obliged to admit defeat and TELL us they have decided not to proceed any further or can they just leave it up in the air so we have to worry about it for another few months?
If this is so, should I threaten a counter suit and give them something to think about?

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