Sad puppy story

I am so upset about this and I was hoping to get input about what I should do.

Last Friday, my son's 5 year old friend came to our house for 2 1/2 hours to play. He had never been to our house before and his mom (a teacher at my kids' school) warned me that he was a handful. I have 3 kids and, having been a stay-at-home Mom for two years before I went back to work a few months ago, am used to having a houseful of kids--well-behaved and those not so well-behaved. I had 11 dogs--2 are 8 week old Pomeranian puppies named Tinka and Mallory. These puppies are kept in my room and this boy is rough and I told him he could not hold the puppies and that the puppies had to stay in my room. I kept a close eye on the kids--not because of our dogs, but just like I would check on any new kid who came to my house and I wasn't sure what to expect. 5-10 minutes didn't go by without my checking on them. At 5:50 p.m., he went outside and his mom got to our house at 6:05 p.m. to pick him up. He came walking INTO my house with Tinka (who was not supposed to be out of my room, let alone outside) and there was obviously something horribly wrong with our puppy. He refused to say what he did. My youngest daughter and son told us that he threw her like a ball over our 6 foot fence--he didn't say why--just did it. We rushed Tinka to the vet and had her there within 15 minutes, but the vet couldn't save her. Tinka's neck was broken.

Of course, our entire family is heartbroken. I am so upset that we lost our puppy and lost her this way. I have had so many kids through my house and none of them ever did anything but handle these puppies like they were little babies. We've had this puppy since she was born, the puppies were sisters so we've had her for her entire life. My problem is this--my kids' go to private school with a total of 22 kids. They are angry and want to announce to the school that this boy killed their dog. I've told them that they can't do that. That it's OK not to be friends with him anymore, but not try to turn the school on him. I don't know if this is the right thing to do or whether my kids should be allowed to say what they want to. The little boy refused to apologize or seem to care what he did and tried to say that my kids killed our puppy so my 9 yo daughter thinks he is "bad." I try to put myself in their shoes knowing that they have to see this boy everyday since it is such a small school, but I don't know what the right thing to do is. I'd probably consider changing schools if I didn't live is a small town with only one other private school. My second problem is that the boy's mom wants to pay for the puppy--I guess she wants us to place a value on the puppy. How can I do that?

Sorry this is so long and for such a sad post...Stephanie