Brown, 32, whose real name is Inga Marchand, was facing prosecution for allegedly violating an order of protection last year by mooning a neighbour in Brooklyn with whom she had been feuding.
But the charges were dismissed when her accuser, Arlene Raymond, refused to testify.
Now her lawyer says he is planning on filing a '$100 million' lawsuit against the city of New York over the arrest.
Lawyer Salvatore Strazzullo said he will also file a claim against the Assistant District Attorney's office for 'malicious' treatment of his client, insisting prosecutors should never have gone after Brown.
'With school budgets cut, they had the audacity to file charges,' Strazzullo said. 'Do we want our tax dollars going for this?'
A spokesperson for the city's Corporation Counsel said they 'have not seen any legal papers'.