EMBED >More News Videos "Empire" actor and R&B singer Jussie Smollett told Chicago police in January that two men physically attacked him and yelled racial and homophobic slurs. There have been dozens of twists and turns since then.

EMBED >More News Videos Chicago police have released nearly 70 hours of video in the Jussie Smollett case.

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CHICAGO (WLS) -- The Jussie Smollett case returned to federal court Tuesday morning for a hearing on the city of Chicago's $130,000 lawsuit against the "Empire" actor.Officials said false claims of an attack made by Smollett cost the city more than $130,000. That money was spent on investigating the alleged racist and homophobic attack.After a thorough investigation, authorities concluded Smollett knew his alleged attackers and staged the whole thing, but the charges against him were dropped.The city is now asking a judge to make Smollett pay for the work of two dozen officers and detectives working hundreds of hours of overtime, over two weeks.The actor's lawyer said it's going to take a lot of work to prove that in court."Two basic issues, which is one is the causation, which is taking what the city says, they don't tie together what they allege are the facts, which obviously my client disputes, with the cause for overtime, which is why the overtime occurred versus using different policemen in different shifts and the like and we believe they have to be intertwined and tied together," said William Quinlan, Smollett's attorney.Smollett was not in court Tuesday. If this case moves forward, Smollett's team would like to speak to city officials, including Superintendent Eddie Johnson.Both teams will be back in court on October 22 when the judge will announce her decision on whether or not to dismiss this case.Smollett may be facing more trouble. A hearing is set for this Friday in which a special prosecutor could be assigned to further investigate the Smollett case meaning there is a chance Smollett could be recharged.