McGee and Me!: The Big Lie(1990)

Eleven-year-old Nick, along with his parents and 14-year-old sister Sarah and little sister Jamie, moves into his grandmother's house in Eastfield, Indiana. In an effort to make friends and avoid a bully, Louis tells lies about George Ravenhill's house, Nick sneaks into the old man's cellar, scares himself, and Louis, Renee and the kids at school create stories about the encounter that spiral into lies. Derrick and his friends wreck the house and Nick is forced to clean it up as punishment. His dad helps him learn an important lesson about lying, elders, fear, speaking up, and bullying.