Sgt. Brandon Matthews has been on administrative leave from the Watkins Glen Police Department since last August.
State police investigated allegations against Matthews but a grand jury declined to indict and the case file was sealed.
Matthews claims the suspension and investigation were retaliation after his wife rebuffed Mayor Luke Leszyk's sexual advances.
Matthews filed a notice of claim against the village and the mayor and his attorney is preparing a lawsuit.
A Watkins Glen police officer who remains on administrative leave and was the subject of a state police investigation is planning to push back with a lawsuit against the village and its mayor — claiming the suspension was retaliation after the officer's wife rejected the mayor's sexual advances.