my son's 4th grade teacher told his class that he was going to jail and now the other children are bullying him in school. also, he is in special education
Most likely you are relying on the reports of a child or children in this matter and those will not by themselves suffice as the factual basis for a lawsuit. But the reports of your son and/or his classmates is adequate for a complaint to the teacher and the school and a request for investigation by the school administrative officers. Suing is almost never the correct course as a first resort.
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This type of behavior is unacceptable. Your child does not deserve to be treated this way.
This answer is for informational purposes only. I am not your lawyer. If you want legal advice concerning this question, you should hire a lawyer.