Isn't this illegal? do we have the right to sue police dept?

Hey guys. this morning my boyfriend woke up to go to work and his car was gone. so we filed a report that someone stole it and then we found the temp license plat torn apart on the ground, because its new and it doesnt have the real plates yet. And teh tags are in the window and while reporting it stolen the cops said they impounded it because it didnt have tags but it did and thier in the window and we want to file a complaint that they STOLE the car at 3.00 am and now my boyfriend has to miss work and he works alone so he cant open. And they had no right to take the car. Do we have the right to sue? Also the towing company said that the police in our town are doing that to everyone whos car is parked on the side of the street, because we dont have a driveway. But they basically stole it, Also the police said we CANT file a complaint againt them. Thats BS right?