I need to let go an employee who reports directly to me. I had brought this up to them recently, and they got defensive and threatened to sue for racial discrimination, while we are both African Americans, my manager is white, and this employee blames my manager such that they are threatening to sue. I should mention my manager is an open supporter of a political figure who is often accused of being racist, so it's not the hardest argument that they are racist, not at all saying they are, but you could argue that.
I should mention, we are letting this employee go due to their lack of performance.
How do I go about mediating this situation such that I can let the employee go, and avoid the lawsuit?