dumb on both part on the guy he got the car from can say it go stolen.. and your friend sorry to say was dumb for signing the title and giving it to him.. i wouldnt have done that till i had the title in the first place.. soo your friend really doesnt have a lawsuit. the other guy can for the car getting stolen..but you never know.. but all i can say is good luck with that buddy, they should really just get the cars back..