DURHAM, N. C., Dec. 4  -- Former Durham County District Attorney Mike Nifong lost his bid Thursday to keep his case in U. S. bankruptcy court.

The Raleigh (N. C.) News & Observer reported that the federal judge's ruling opens the door for three exonerated Duke University lacrosse players to renew their pursuit of malicious prosecution allegations against the former prosecutor.

Former players Dave Evans, Collin Finnerty and Reade Seligmann in October 2007 sued Nifong, the city of Durham and its police department, claiming they suffered personal injury and emotional distress while a flawed rape case was brought against them. The accusation was leveled by an exotic dancer hired to perform at a party attended by members of the Duke lacrosse team.

Nifong filed for bankruptcy protection Jan. 15. In his filing, Nifong listed assets of $243,898 and the potential debt of $180.3 million, including $30 million to each of the lacrosse players who had sued him at the time. (UPI)