How much are we talking here? Many states have to be above $5 to 7.5 thousand to get lawyers involved out of small claims court. Also, many lawyers will do brief consultations on your case without charging you.

For future reference, don't back down when threatened with litigation. If it's actually a bullshit claim, they'll either settle out of court (on their own lawyer's recommendation) or they'll end up paying your lawyer for you when you win your case.