Your daughter over reacted but the facts are it has happened I doubt if they will think it anything than childhood games and normal silly behavior. As for your family being torn apart trust me this is small fry compared to what some Families go through and it never goes away , so you all need to back off , chill out, let it go . I expect the children have all been freaked out, and wont be going there again with their silly talk .and thats all it was.
you are right your daughter was wrong to call social services. however now that it has been done, i couldnt tell you what needs to be done. if they didnt DO ANYTHING then what is the issue. the fact that it was said? WoW. i feel for you and your grand daughter, she probably wont ever tell your daughter anything again. your grandson parents sound like they did the right thing.
good luck, wish i could give you more
It is actually anyone's responsibility to call social services on any suspicion and you are responsible, even if they are not your kids. I would have a talk with the kids to ask if anyone has played that game with them or if anyone told them to play that game. I think your daughter did the right thing in contacting social services. It does not matter if you don't have all the facts. It is CPS' job to investigate further. Nothing might have happened at your house, but what if something has happened in the past. That is the reality. You have to be careful and protective of children these days because there are a lot of child rapists, sexual abusers, rapists, whatever you want to call them out there. Even pre-teens are sexually abusing others.