The paper gives a formal analysis of public lies, explains how public lying is related to public announcement, and describes the process of recoveries from false beliefs engendered by public lying. The framework treats two kinds of public lies: simple lying update and two-step lying, which consists of suggesting that the lie may be true followed by announcing the lie. It turns out that agents' convictions of what is true are immune to the first kind, but can be shattered by the second kind. Next, recovery from public lying is analyzed. Public lies that are accepted by an audience cannot be undone simply by announcing their negation. The paper proposes a recovery process that works well for restoring beliefs about facts but cannot be extended to beliefs about beliefs. The formal machinery of the paper consists of KD45 models and conditional neighbourhood models, with various update procedures on them. Completeness proofs for a number of reasoning systems (converse belief logic, public lies logic, lying and recovery logic, conditional neighbourhood logic, plus its dynamic version) are included.