My friend's kid is so bad!

We went to a party the other day for his communion. Last year he hit my DH for no reason & he was like 'Whoa,you don't hit people!'
My friend disregarded it saying that he doesn't know the difference between playing or fighting.
We were ****ed but we let it go.
Then this weekend,we went to his party and the first thing he said to my DH was 'How's your chin from when I punched you' really nasty.
DH was furious and so was I. I waited until after the party to tell her what he said.She said she would talk to her son. Her son told her that he said it nicely.I was there and that is a lie.She doesn't understand why he would be like this.The little kid used to like me so that is the only reason we can think of that he would be so fresh and disrespectful to my husband unless he's not the only one & he does this to others.
Anyway,the problem is that we will no longer hang out when the kids are involved because we won't tolerate his behavior. My friend doesn't see it.She lets them do whatever they want.