Is my son's employer breaking a written contract?

My son and his coworker were recently caught stealing money ($7) from his employer, which he truly regrets. After a conference with the head of the mall security, the employer, his coworker, and me, we all came to an agreement that my son and his coworker will pay $100 each for their mistake. They each wrote a contract describing what happened and saying that they will pay the $100, which they signed, as well as the employer and me (the witness to the writing of the contract). The head of security said that after we've all signed the contract, the employer is not allowed to call the police or take any further actions (even though it doesn't actually say that on the contract). I was a little hesitant about believing that, but after a while, took his word.

Now, a few days later, I received a call from his former employer saying that she has called the police and plan on taking my son and his former coworker to court, despite agreeing not to. Is there any way that we can fight that? The head of security and I are both witnesses to her agreeing not to take further actions. The security even said "by signing this paper, you are agreeing not to call the police or take any further actions," except the only thing is that it wasn't actually written on the contract.

By the way, if you're just going to answer by commenting about how my son deserves to be punished by law, then please save it. I KNOW what he did was WRONG, I'm NOT saying that he doesn't deserve to be punished for what he did. I'm very disappointed in him and am glad that he got caught. I'm just wondering if the employer is actually allowed to call the police after she agreed not to?

Update:

Another question... could this mishap have been prevented if we made sure to include it in the contract? Would she have to abide by it then, or can she ignore it and call the police anyway?

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