There are a few different ways fraudulently filed mechanics liens can be dealt with. The easiest way to have a questionable lien removed, though, will be to have the lien claimant release the lien themselves. While that might seem like an unlikely outcome, threatening to take legal action due to a fraudulently filed lien and explaining the errors and issues with the lien claim might help to convince a lien claimant to release their own lien before a contentious legal dispute erupts. And, by sending a lien release demand letter (potentially via attorney), an owner might be able to snuff a fraudulent lien early.
Penalties for fraudulent liens
Any time a mechanics lien has been exaggerated or otherwise fraudulently filed, serious penalties will be on the table. Levelset discusses that idea here: Don’t File Fraudulent Mechanics Liens. But at the same time, there is a difference between fraud and an honest mistake - and, mere errors on a lien claim won't always render it fraudulent (or even ineffective).
Still - in Tennessee, under § 66-11-139 of the state's lien statute, if a lien claimant has willfully and grossly exaggerated the amount of their lien, that party may be blocked from all lien rights and could even become liable for expenses and fees incurred by the owner in defending against the lien. To obtain that relief, though, an owner would need to formally challenge the lien filing in court.
Further, under § 66-11-206, a contractor who willfully, knowingly, and unlawfully falsifies statements on a lien claim has committed a Class B misdemeanor.
Finally, note that owners fending off allegedly fraudulent liens also often fight lien filings by asserting the lien claimant has slandered their title. For background on slander of title, AllLaw.com has a great resource: What is a Slander of Title Claim? Of course, slander of title laws vary by state, so Tennessee may have certain requirements that might not necessarily apply to this situation.
At the end of the day, though, mechanics liens can have drastic effects - so when fighting a questionable mechanics lien claim, it'd be wise to consult a local construction or real estate attorney. They'll be able to review all of the relevant documentation and advise on how best to proceed based on your circumstances.
As a final note, here's a resource I think might be helpful: A Mechanics Lien Was Filed on My Property – What Do I Do Now?