AceShowbiz - Pras Michel has decided to step back from his fraud lawsuit against former bandmate Lauryn Hill.

According to a recent court document, attorneys representing both parties have agreed to dismiss the case without prejudice. This means Michel is pausing the legal action for the time being but retains the option to refile the claims later if he chooses.

The lawsuit was originally filed in 2024 after the cancellation of a planned reunion tour for their group. In the complaint, Michel accused Hill of "gross mismanagement," alleging she profited financially from decisions related to the tour while he encountered increasing legal troubles.

When the allegations first emerged, Hill strongly denied them, describing the lawsuit as "full of false claims and unwarranted attacks."

This legal development occurs amid a challenging period for Hill, who has also been addressing tax-related issues with the state of New Jersey. A spokesperson for the artist confirmed to TMZ that she is cooperating with a repayment plan established to resolve her state income tax liabilities.

Hill's representative stated, "Ms. Hill is complying with a repayment plan she entered into with the State of New Jersey to resolve state income tax liabilities."

As of now, the fraud suit remains dismissed without prejudice, leaving the door open for potential future legal action by Michel.