Officials have informed that Arizona wants a federal judge to dismiss a lawsuit by a Phoenix couple who say they were falsely accused of sexually exploiting their daughters.

The Arizona Republic reported on Monday that Lisa and Anthony Demaree are suing the state of Arizona for more than $8 million in damages after they lost custody of their daughters in an investigation by the state over naked bath and playtime photos of their children.

The newspaper said that a Wal-Mart photo clerk noticed the photos in a batch the Demarees dropped off for developing and notified police.

The Demarees temporarily lost custody of the children, ages 18 months to 5 years, during an investigation that lasted more than a year.

The children were returned to the Demarees after a judge ruled the photos were innocent shots of the daughters' bath time.

Arguing Demarees didn't file a notice of claim far enough in advance of filing their lawsuit, Arizona officials want the suit thrown out.

Richard Treon, the Demaree's attorney, said about the notice of claim, "That's a hypertechnical in the extreme defense. The court, we don't think, will decide the case based on technicalities."

The newspaper further said that the Damarees have a separate lawsuit pending against Wal-Mart for unspecified damages. (With Inputs from Agencies)