Sister in law accused husband of stealing

My sister in law called me yesterday and said my husband stole from her she said he broke in and stole money from her I know he didn’t because he was with me and our kids all day yesterday I told her he never went to her house and was with me the whole day we are hour away from where they even live she didn’t believe me she told her family they are all calling him a thief now and his parents won’t talk to him . Should we just cut them off ?