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Yes, the Court can do so.

Added; (in the US) It all depends on WHOSE witness is lying. It is pretty much understood that the defendant and their witnesses will not tell the truth. A case will not be dismissed because of this.

If a prosecution witness is caught in a lie, the court must determine just how badly that witnesses's false testimony impacted the case. If their lie damaged the case irrevocably it is more likely the judge will declare a mis-trial rather then simply dismissing the entire case. But... anything is possible.

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Q: Can a case be dismissed if the plaintiff was lying?
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