Can a third party sue for a no fault accident?

Can a third party sue for a no fault accident? My wife was in an accident recently where an elderly man made an illegal left turn into her and she was pushed into oncoming lanes which were luckily at a red light. Once the police got involved she was found to not be at fault and all damages were to be paid by the elderly man. The issue is that there was a third car involved that also sustained damages as my wife was pushed into them. The elderly man’s insurance will only cover a third of their damages, so they are trying to sue my wife for the balance, even though she was not at fault. Can they do this?