Financier Stanford drops lawsuit against officials

March 24, 2011 1:02:51 PM PDT
Jailed Texas financier R. Allen Stanford has dropped a lawsuit accusing officials of depriving him of his constitutional rights by using abusive law-enforcement tactics. A federal judge earlier this week granted a request by Stanford's attorney to dismiss the suit, which accused federal prosecutors and agents of using illegal tactics to arrest him and seize all his personal and business properties.

R. Allen Stanford is accused of bilking investors out of $7 billion in a massive Ponzi scheme.

The judge's order says the lawsuit, which asked for $7.2 billion in damages, can be refiled after the criminal case is done.

Stanford's case is on hold while he's being treated in a federal prison hospital in Butner, N.C., for an anti-anxiety drug addiction he developed while jailed in Houston.