A United Kingdom-based pilot falsely accused by the US of being the 'chief instructor' of the September 11 suicide hijackers began a multimillion-dollar damages claim against the US Department of Justice and the FBI.
Twenty-nine-year old Lotfi Raissi is claiming US $10 million in damages from each of the two institutions.
His British solicitor on Monday said the British police and the Crown Prosecution Service could be the next target of costly litigation.
Algeria-born Raissi spent five months on remand in a maximum security prison in southeast London. He was arrested under terrorism laws at his home in Colnbrook, near Heathrow, a few days after September 11, 2001 attacks in the US.
At America's request, he was the subject of an extradition hearing in April 2002 but it was thrown out of court, with the judge ruling that he had received no evidence to support the allegations of terrorism.
Despite all charges being dropped, the US sought Raissi's extradition on relatively minor offences unrelated to terrorism. Now Raissi instructed his lawyers on both sides of the Atlantic to take action against the people who 'ruined' his life.
"I love the US. I lived and trained there and had hoped to make a life for myself in America. But the US, together with the British police and prosecutors, ruined my life and they have not even apologised," he said.
Jules Carey, of Tuckers solicitors, who is representing Raissi in the UK, said the false accusations had blighted his client's life.
"The consequences for Raissi have been utterly ruinous," he said. "His family spent enormous sums to support his training as a pilot and now he will never work in his chosen profession.
"On account of the unfounded allegations many will always see him as a terrorist. His entire life, both personal and professional, has been blighted by the allegations and it is time for the US and UK authorities to acknowledge their part in his undoing," he said.
Outlining his client's claims, Carey said: "He is claiming false imprisonment, false arrest, malicious prosecution, malicious continuation of prosecution, abuse of process, intentional infliction of emotional distress and negligence in infliction of emotional distress."
"I suspect it was something of a knee-jerk reaction on the part of the Americans to arrest my client. They found a Muslim Algerian flight instructor and saw an ideal opportunity to be seen to be doing something. We hope that they will finally apologise and offer some redress and we will be happy to drop the proceedings," he said.
"The police and the CPS are on notice that we will pursue claims against them too but they are at a preparatory stage," he said.
He said Raissi would be 'very reluctant' to return to the US to take part in the proceedings as he might face arrest and jail, where his life would be in danger.
One of Raissi's US attorneys is Paul Hoffman, who represented Rodney King after his savage beating by Los Angeles policemen in 1992.