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How can we stop a person from slandering our company name after they cancelled a project & we refused to refund the dep

OhioConstruction Contract

We have a signed contract with a person that hired us to remodel their bathroom. They signed a contract 1 mth prior to original start date and the contract states material deposits are non refundable. We had to reschedule their project 2 times due to financial difficulties on their end, and then they cancelled the project 3 days prior to the final start date. We agreed to give them their material (we are unable to use it on a different project due to it being custom) and are waiting on them to schedule a time to pick up said material. Now they have decided to file a complaint on us with the better business bureau and will not resolve the claim until we issue a full refund. What can we do to stop them from slandering our company name, and resolve the claim without us issuing a refund? Any advise is greatly appreciated!

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