Thanks for all the responses. They pretty much mirror how I feel. My son is OK, his story wasn't completely out of the realm of what a bright 7 y.o. might be expected to come up with, but the school may not take it lightly.

It remains to be seen if we will have to opportunity to address concerns that may have arisen. We are in a large school district with some problems and incidents DO happen. That may make it hard for them to be dismissive of the story. I can understand that view.