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Has she actually filed a lawsuit or is she just threatening to do so?
What proof does she have where she is claiming that you have it?
Ok, then you probably don't have much to worry about. She would have to come to VA to file a small claims suit in order to get personal jurisdiction over you to force you to come to court and defend. And since you simply don't have it, but have directed her to who does, I don't see any judge ruling in her favor if she actually took the effort to come to VA to file a suit.
So she is likely just blowing off steam and won't do anything other than contact sister to see if she has it..