Jussie Smollett must be prosecuted by the city of Chicago for the costs of investigating an alleged racist and homophobic attack on the star.
The Empire actor, who is openly gay, told the police that he had fallen victim to an attack in January, but was later accused of organizing the crime.
Costs against Smollett dropped during a last-minute lawsuit last month, to the anger of the mayor and police chief of Chicago.
Despite the fact that the case was rejected, prosecutors still said they thought the attack was taking place and asked the star to pay $ 130,000 (£ 99,500) to cover the costs of the investigation.
The payment deadline has now expired and Chicago is planning to file a lawsuit, the city's legal department said.
A statement added: "Mr. Smollett has refused to reimburse the city of Chicago for the costs of police overtime spent investigating his fake police report on January 29, 2019.
"The Legal Department is now preparing a civil complaint to be filed with the Circuit Court Of Cook County. Once the file has been submitted, the Legal Department will send a courtesy copy of the complaint to Mr. Smollett's Legal Team "
The trial will be filed "in the near future" and the city will "pursue the full allowable compensation," the statement added.
Prosecutors believe that Smollett, 36, has hired two brothers to carry out the attack – hoping that attention would help his career advance.
Police also claim that Smollett sent a letter prior to the attack in which he threatened himself to the television studio in Chicago where Empire is being filmed.
Smollett maintains his innocence and insists that the attack took place.
After the charge was dropped, he said he was "honest and consistent at every level since the first day" and that "I would not be my mother's son if I was able to get one drop of what I was accused of".
The actor's future on the musical drama Empire remains in doubt after he was written at the end of the fifth season, now on show in the US.