Help!!!

I need everyone’s opinions. So basically my husband got a puppy in 2012 and she was microchipped and shots taken care of everything you name it. She was taken off property by a crazy family who is taking us to court next month to get their dog back. Yes we looked for her but not but so much you can do. The family swore they took her to get scanned but 6 years and you mean to tell me no one “checked”!! What the heck. Well long story short she was found roaming the streets and was taken by an older lady to the emergency vet and they called us bc she was scanned under our name! Now they are taking us to court saying we stole her and crazy shit?? I’m just curious on who would win and what it will be?? I want our dog to stay with us! This makes me furious!