A $10 million federal lawsuit against Miami University has been dropped by a national fraternity that sued after police found a cache of fireworks and illegal drugs at the house of its local chapter

Phi Kappa Tau filed the suit last week after sophomore fraternity members were banished to campus housing. The suit was dismissed “without prejudice” Tuesday, which means it can be refiled.

The lawsuit stated Miami acted with “reckless disregard” and with “malice, hatred and ill will” toward the 37 banished sophomores. It also stated the fraternity stands to lose more than $130,000 from lost rent. The suit was filed by F. Harrison Green, chairman of the Board of Governors of the Alpha Chapter of the National Fraternity. He could not be reached for comment as to why he dropped the action.

The university placed Phi Kappa Tau and Sigma Alpha Epsilon on summary suspension after police found fraternity members shooting fireworks at each other at 5:30 a.m. Aug. 19. Upon searching the houses, police found unmarked bottles of pills, a container of white powder, marijuana, scales, bongs, and spent and unlit fireworks.

Miami spokeswoman Claire Wagner said nothing has happened on their end that would prompt the lawsuit dismissal. She said the university is still investigating the incident. The sophomores were banished because the university has a policy that first- and second-year students must live on campus unless they have permission to live in a fraternity house. That permission was erased by the summary suspension.

Oxford Police Chief Bob Holzworth said the incident is still under investigation and they are awaiting crime lab test results on the items seized.

Charlie M. Rittgers, who practices both civil and criminal law, said the criminal aspect of the case may have prompted the dismissal.

“There can be several reasons a lawsuit is dismissed without prejudice. In this particular case, the most likely reason is the pending criminal charges,” he said. “The defense lawyers for the students likely did not want their clients testifying in the civil case prior to disposing of the criminal charges.”

Green also filed a temporary restraining order with the lawsuit asking Judge Susan Dlott to stop Miami from moving the sophomores out of their house. Dlott denied the motion. The students received their new housing arrangements last Tuesday and had 48 hours to move out.