Earlier Republican Action Against Drugs said its “Donegal Unit” had “executed” Mr Allen for drug dealing.
However the dead man’s uncle hit back at those claims tonight.
William Allen said: “This tissue of lies is beneath contempt. I do not intend to give this gang any undeserved credibility by engaging them in public debate other than to say the propaganda peddled by these dealers in death could not have been repeated by the media had Andy not been murdered.
“None of the media outlets carrying these claims would have dared to do so had Andy been alive because of the very serious legal consequences.”
William Allen added: “At a rally last Saturday in protest against Andy’s murder the press was shown a copy of the threat. If RAAD was the republican death squad behind this murder the questions remain about who instigated this atrocity and why.”