U.S. District Judge Virginia Kendall said the case could continue on to the discovery phase.
The city is suing for $130,000, the amount it says it took to investigate the false claims Smollett made of a racist attack that he tried to blame on men wearing "Make America Great Again" hats. He said that they made homophobic and racial comments during the attack, but police accused him of a race hoax when they discovered the men were friends of Smollett.
Smollet's attorneys argued that he could not have known what the police investigation would cost, but Judge Kendall denied the argument.
"Mr. Smollett has always maintained his innocence and is eager to have the complete facts of the case come out. He looks forward to taking depositions and otherwise bringing to light many of the facts that have been overlooked in the court of public opinion to date," Quinlan said.
"Mr. Smollett is confident that once the full story is available he will be vindicated," he concluded.
Here's a local news report about the judgment:
Judge: Case Against Smollett To Continue www.youtube.com