Negative reviews can be extremely tricky, especially during this time of the year.
Yes, it is best practice to respond, but my advice would be to work towards diffussing the situation rather than getting into a he-said-she-said war of words online. Your reputation depends on it.
While it may be tempting to set the record straight, it’s seldom ever productive, may be seen as a challenge, and could easily look unprofessional (at best), or even spawn brand new negative reviews on other services such as Yelp or the BBB (yikes!).