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What are previous employers allowed to say about you to potential employers?

Question Details: My daughter quit her job at sonic. And then was in the process of being hired at a pizza chain, then recieved a text from the manager that said this, "Hello this is the manager at X. I'm sure you are at school so I'm not calling you. I'm very sorry but I won't be able to hire you at this time. I called you're previous employer and there were some cash issues that I was informed of. Again I'm very sorry". First of all this isn't even true. Secondly, are they even allowed to say things like this?

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