Just ask them to correct it. In the next edition they will make the correction and apologize, if they're professional enough. If no, then take some action. Frivolously suing everyone isn't a good thing. What did you NOT say that they wrote?
What did they say when you contacted them and told them they misquoted you and, thus, misrepresented what you said? Or, was your first reaction to consider a lawsuit?
2nd question: is there any way I can PROVE I never said it? I know for a fact I didn't and I don't talk to the people that make the newspaper.
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You haven't even answered our first questions, and you want us to answer your 2nd? Yeah, right. GOOD LUCK WITH THAT, man.
What did they say when you contacted them and told them they misquoted you and, thus, misrepresented what you said? Or, was your first reaction to consider a lawsuit?
Hard to help when you provide no information. I'm guessing, though, that unless you can show signficant and quantifiable monetary damage resulting from the libel (if any such thing even occured), it won't be worth suing over.