Girlfriend And I Now Have A Lawsuit Against Us Based On Her Parents Dog's Actions?

Hello!
Location: Indiana.
I have never posted here but I have an interesting (I think atleast?) scenario for you experts. My girlfriend and I live in Indiana. Her parents came to visit us over Thanksgiving or Christmas around two years back. We rent a small house near my girlfriend's hometown. Her mom and dad's golden retriever came up to visit as well. He is a great dog, doesn't bark at people or animals, and has never really given us or her family any trouble.
So, while we were away at work, supposedly the dog was out in the garage as her parents brought some groceries inside. An older lady, maybe 60s or so, was walking by our house. Apparently the woman says the dog ran towards her, spooked her, and she fell and hurt her knee? I have no idea if it was a torn ACL or something to that degree, but she has opened a lawsuit against multiple people now.
At first she started with us, the renters of the home. Then when she realized our landlord has a few rental properties and a good amount of money in general, she opened a lawsuit against him. I was told by him that he immediately shut that down via his lawyer. She then reached out towards my girlfriend's parents (they live in Florida). Our landlord advised us to pretty much just let it be, that the person opening the lawsuit has no evidence and this would be a tough case for her to win.
So we did. It's been just under two years I believe and we actually just left the Midwest and are also now in Florida. My girlfriend just got a phone call from her dad that he's been served papers and to be prepared to receive some documentation herself in the near future.
I have absolutely zero background in law and have never been in a situation anything like to this. Does anyone have any advice for my girlfriend or her parents? My girlfriend and I didn't see any of it happen. Who knows if it even truly happened the way the lady suing said. There's no camera footage that we know of. The dog has never, ever attacked/bit someone or shown even the tiniest sign of aggression. I'm shocked this is still going on almost two years later.
TLDR: girlfriend and I were not home and away at work. Her parents in town visiting our new rental home. Parents' dog supposedly ran outside, spooked someone walking by, and she hurt her knee. Now being sued.
Thank you all so much. Also if it is just best for me to delete this in case in can be used for evidence somehow, please just let me know and I'll be glad to!
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