You can always sue, but the law doesn't support you. The procedure for correcting an inaccurate item on your credit report is contained in the federal Fair Credit Reporting Act, and I am posting a link to that law.
Your state may also have laws governing this process as well, and I would refer you to the state website to search for these laws.
The typical protocol is to contact each of the credit bureaus online or by mail and dispute the item. By disputing the item, you are asking the credit bureaus to investigate this issue. if you have evidence, you may submit it with your dispute.
Mistakes on credit reports are very common & law firms make a good living correcting these mistakes for people that lack the skill to do this on their own.
There is nothing personal about the creditor making a mistake on your credit report. It happens thousands of time a day. Hope this perspective helps!