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Legally if you don't have enough prove to prove your innocence and your neighbors false testimony then don't go for a sue. I believe it won't be impossible to sue but if that person could cause a false testimony to cause a moral damage already there is no guarantee that he won't do it to save him. It might cause more mental pressure on your side rather then him/her.

Morally and Spiritually I would say let it go. I know it is really hard to let it go

but there is a saying that don't act like a dog to a dog... So let him be anything but keep yourself free of his influence... I can see you have a strong mentality and firm believes in goods and evil. So please be firm as you are.

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Q: Can i sue my neighbor's false testimony for moral damage?
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