The lawsuit was being prepared after Smollett, 36, refused a demand by the city for $130,000, said Bill McCaffrey, a spokesman for the city's Department of Law.

"Mr. Smollett has refused to reimburse the City of Chicago for the cost of police overtime spent investigating his false police report on January 29, 2019, McCaffrey said. "The Law Department is now drafting a civil complaint that will be filed in the Circuit Court of Cook Country."

Smollett, who is black and gay, touched off a social media fire storm by telling police on Jan. 29 that two apparent supporters of U.S. President Donald Trump struck him, put a noose around his neck and poured bleach over him.

But the actor, best known for his role as a gay musician on the Fox Television hip-hop drama “Empire,” was charged in February with staging the incident himself and filing a false police report.

Last week prosecutors dropped all charges against Smollett, infuriating police and outgoing Mayor Rahm Emanuel. The case file was sealed by a Chicago judge, which critics suggested was evidence of a cover-up.

The actor's criminal defense attorney, Mark Geragos, could not be reached for comment.

Read also: Case dropped against US actor Jussie Smollett accused of hate attack hoax

On Monday, some 300 people, including off-duty Chicago police officers, took to the streets to protest, calling on Cook County State's Attorney Kim Foxx to resign over her handling of the case.

Foxx, who recused herself from the case before charges were filed, citing conversations she had with one of his relatives, has defended her actions and those of her prosecutors.

Smollett was written out of the final two episodes of "Empire" this season after he was charged with staging the hate crime. Fox executives have not said if he will return should the show be renewed for another year.

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