A former friend of mine says that I borrowed dollars, which I didn't and is now sueing me. Can he?

A former friend allowed me to crash at his place for 2-3 months while I was going through a divorce. He makes a lot of money and in those couple of months took me out several times and paid, telling me not to worry about it. He is now coming back and sueing me for dollars supposedly "loaned". Obviously our friendship is over but am I going to be held accountable for these dollars?

Sure he can sue you. The question is can he collect?

The issue should be decided on the evidence. Did you sign anything agreeing to pay? Can you honestly testify that there was never any discussion of a loan? If neither happened, he should have a hard time proving you owe him money.

I get the feeling there is more to this story than appears in the question. Like he's using the money to get even for something else. If that's the case, be prepared to explain the whole story in court. Small claims courts often allow the judge a lot of slack in asking questions and ruling in cases where there's no paperwork.