PETALING JAYA (THE STAR/ASIA NEWS NETWORK) - A civil racketeering lawsuit filed in the United States by two Malaysians against Red Granite Pictures, the producers of the Oscar-nominated film The Wolf of Wall Street, has been dropped.

Entertainment portal The Hollywood Reporter reported that lawyer Matthias Chang and former Parti Islam SeMalaysia (PAS) leader Husam Musa had moved to voluntarily dismiss the suit without prejudice, according to court documents filed on Friday (Sept 23).

The duo had alleged in the suit that funds from state investment fund 1Malaysia Development Berhad (1MDB) had been used to produce The Wolf of Wall Street.

The report said no reason was given as to why the suit had been dropped.

On Aug 14, Chang and Husam initiated a putative class action against the company, along with principals Riza Aziz and Joey McFarland, claiming Red Granite had used funds from 1MDB to produce the movie.

In a statement, Red Granite told The Hollywood Reporter that the dismissal of the "frivolous" lawsuit was the right thing to do.

"It never should have been filed in the first place. Red Granite continues to work on exciting new projects," it said.

Despite the dismissal, it is reported that the US Department of Justice is still investigating the film's funding.

However last month, a court agreed to allow the producers to continue working as usual pending the investigation.

Riza Aziz, a co-founder of Red Granite Pictures, is the stepson of Malaysian Prime Minister Datuk Seri Najib Razak.