The short answer
Yes — in principle you can sue the author of a fake review for defamation (or business disparagement). But the bar is high, the process is slow and expensive, and for a single review it's rarely the best use of your time or money.
Most reputation problems are solved faster through Google's removal process and a calm public reply. Litigation is the tool of last resort, not the first move.
Defamation vs protected opinion
Defamation requires a false statement of fact that harms your reputation. 'They charged my card twice and never refunded me' is a factual claim that can be proven true or false. 'The service was terrible and I hated it' is opinion — and opinion is protected speech.
This distinction decides most cases. If the review is an unflattering opinion or substantially true, a lawsuit will fail no matter how unfair it feels.
The practical hurdles
Reviews are often anonymous, so you may need a subpoena just to learn who wrote it — extra time, cost, and uncertainty. Then you must prove falsity and actual harm.
There's also the Streisand effect: suing can draw far more attention to a review than it ever would have gotten on its own. Weigh the publicity risk honestly.
Cheaper steps to try first
Flag the review for the specific policy it breaks, escalate through Business Profile support if it's ignored, and post a professional reply in the meantime. Many fake reviews come down this way without a lawyer.
You can also send a measured request for retraction. Often a documented, factual message resolves it faster than any court could.
When legal action makes sense
Litigation can be justified for a sustained campaign of fabricated reviews, clearly defamatory false statements of fact, or demonstrable financial damages — situations where removal alone won't stop the harm.
Even then, consult a defamation attorney before acting. Never post legal threats publicly; let a professional advise on the right, low-risk approach.