Thomas Roberts, the owner of Transmission Doctors in Millington, is suing the city, the ex-police chief, and a couple of other Millington police officers claiming his rights were violated.
Roberts is seeking $1.5 million in damages from raids on his business.
An indictment that alleged Roberts sold drugs out of his Transmission Doctors shop was dismissed by prosecutors in August.
The lawsuit names the City of Millington, former chief of police Ray Douglas and officers Michael A. Rose and Degreaun Frazier.
Charges were also dismissed against several other people charged in the undercover investigation.