CHICAGO -- A judge denied a motion to dismiss the City of Chicago's lawsuit against actor Jussie Smollett at a hearing Tuesday.
The city wants to recover more than $130,000 that was spent investigating Smollett's claim of a racist and homophobic attack in January. Police later said that claim was bogus.
The case could go to trial by next year.
WATCH: Video shows Jussie Smollett with rope around his neck
Meanwhile, special prosecutor Dan Webb is investigating the decision by Cook County State's Attorney Kim Foxx's to drop charges.
Smollett was charged with staging the attack in Chicago's Streeterville neighborhood in January. Police and prosecutors said Smollett orchestrated the attack with the help of two brothers. One brother was an extra on "Empire" and the other was Smollett's personal trainer.
All charges against Smollett were dropped in late February in exchange for community service and forfeiture of his $10,000 bond payment.