Hello again and thank you for your reply. There is a disconnect here someplace, because background checks, other than actual contact with a previous employer for references, only show criminal records and credit reports from the credit reporting agencies. You didn't tell me whether or not you were sued, so I can't guess whether or not this is on your credit report legally or illegally. If you were actually sued, then it is on your credit report legally and should come off within two years of when it was resolved. If you were not sued, but this is still on your credit report, then you will need to straighten this out with the credit reporting agencies and your former employer. That may require getting an attorney involved. Without knowing though who you called I have no way of knowing the complete picture here. If you believe that this was on your credit report, then you have to get a copy of it and deal directly with the credit bureaus as I mentioned above.
If this was on your credit report, perspective employers are required by law to give you an actual physical copy of what they receive after the background check showing the problem. That is required under the Fair Credit Reporting Act.
Otherwise, there is nothing else that would be on a "background check" other than a criminal record (must have been charged in criminal court) or credit history. On the other hand, if they meant that they called your prior employer for a job reference, then that is completely different. If your prior employer is saying that you were terminated for misconduct
due to theft, then if you have proof that this is a false statement, you can find a personal injury attorney and sue them for defamation of character. That is the only way to permanently stop them from saying that you stoled from them unless they will stop voluntarily.
Please let me know if you need any clarification. I would be glad to assist you further if I can.