Nah people routinely sue local governments and police and win hefty settlements when it's determined that those organizations negligently damaged them in this sort of way. There was a lady in New York a while back who was held on armed robbery charges for like 18 months and it ended up she was set up by her PI ex-boyfriend who was friends with the cops. She lost her business, her job and all that time with her daughter as well. She sued afterwards and won some mid-single-digit-millions sum that I would argue is low (because honestly while that's probably life changing for her, it's not punitive enough for the police department), but it's not nothing.