Contrarian here. Lots of people saying lawyer up. I would first just like to say that's on the assumption you're in the USA; plenty of jurisdictions that would

Contrarian here. Lots of people saying lawyer up. I would first just like to say that's on the assumption you're in the USA; plenty of jurisdictions that would be an over reaction. But assuming you are in the US, and they are potentially defaming you as individuals, then in my view deferring to an attorney puts everyone on edge and seals lips, whereas it seems very unlikely that an apparently failing company will expend dwindling resources and runway chasing a civil suit for an unemployed engineer. Personally, I'd let them run their mouths and capture what you can. You could even try to be helpful by questioning what problems they're having and why they think it's you just to have them make further statements that either bolster a defence or give you ammunition for defamation proceedings should you wish to. Don't fret too much (all assuming you've done nothing wrong). They're likely just stressed to the gills with a failing business in a pandemic so not acting rationally.