Yes they can. Speak to your guardian FIRST. This is a terrible idea.

A dismissal is the best possible result..............................

It is not their fault. It was your fault...........................

No. Your remedy is likely a motion to strike.

Generally speaking an employer can terminate you, and you can quit, for any or no reason.

A lawsuit will cost much more than you could ever recover.

Scam. Have no contact, send no money. Block all communication.

IMO no. Lawyers are probably evenly split on the question.

is this defamation of character an can my old employer be held responsible for this? No and no. Perhaps you can pay a lawyer to send a cease and...

Sign the release. Problem solved..................................