OK Claig, here's a RL teacher experience. It's probably not as exciting as the DM, though.
On one occasion, in ten year's teaching, a girl spread rumours that I had manhandled her - 'slammed her against a wall'.
She hadn't made an actual complaint, presumably because she knew full well that her story was nonsense.
I went to the Head & objected to the fact that this lass was broadcasting this story, & asked that she be invited to make an official complaint. I also asked the Head to review the CCTV footage; the incident had taken place during a corridor fracas.
(She'd been yelling encouragement at the two boys fighting; I'd taken her by the arm & guided her away. My hand was lightly holding her arm above the elbow & she could've pulled free at anytime).
& that was it. She agreed with the Head that she had been 'exaggerating', he made it clear to her that she was to lay off with the wild stories.
Other than that, I've fended off the odd half-hearted punch or airborne item of furniture. I have all the 'power' I need to deal with students, thanks.