Help! moral dilemma

Last night, my manager urged me to stop being honest with a co-worker because the co- worker seems like the type that would commit suicide. He said that if she commits suicide because she can't handle honesty, and she writes a suicide note saying I caused her decision to kill herself, we'd get in trouble. How does that work? How do we get in trouble for not playing along with her self-induced delusional world? Does that mean every person she encounters in her l...ifetime will have to bend to her fantasy, and if anyone them gets 'real' with her, they'd have to go to jail if she kills herself? That doesn't seem fair to the thousands of people she has the potential to encounter during her lifespan. Wouldn't it be easier on everyone if she just accepts reality? And if she can't, and she kills herself, shouldn't she only be held responsible? Am I wrong? Cuz I know I'm not to be fake for her benefit.