Contractor trying to put a lien on a home we recently purchased. Please advice

We bought a new to us home in first week of June and moved in.

Today I got a certified letter with "Claim of Lien" title and this contractor is claiming that he did work on the home from 2022 till 2 weeks before closing, and is trying to claiming 100k. The document has the previous owners name as Claimant but also calls me out as the person who owns the home now.

What are my options?

Would this goto Title insurance, or do I need to hire my own lawyer?

Is there any scenario here where I'm forced to pay this 100,000$?

I'm 1000% freaking out.

Probably irrelevant: The old owner says this contractor has done no work on this home since first half of 2023 and is lying.