The U.S. Department of Justice said Wednesday it will return $1.1 million in licensed cannabis proceeds to a Pennsylvania armored car company whose vehicles were targeted by San Bernardino County sheriff’s deputies during a pair of roadside seizures last year.

As a result of the settlement, Empyreal Logistics has agreed to drop its federal lawsuit against the Department of Justice, the Federal Bureau of Investigation and the Drug Enforcement Administration alleging the confiscation of cash from its vehicles on Nov. 16 and Dec. 9 were illegal.

“Empyreal was operating legally under California law, but with current federal civil forfeiture laws, even compliant businesses can be targeted,” said Dan Alban, a senior attorney for the Virginia-based Institute for Justice, which represents Empyreal. “Civil forfeiture enabled law enforcement to seize over a million dollars in legal business proceeds and threaten to keep it. Returning this money is the right thing to do and we’re pleased to have helped Empyreal secure this outcome.”

Deirdra O’Gorman, chief executive officer of Empyreal, said she was pleased the company had reached an agreement with the government.

“Empyreal has always viewed ourselves as a partner to financial institutions and law enforcement,” she said. “Our service increases transparency and makes communities safer. Empyreal is committed to continuing our mission of working with financial institutions and their state-legal business customers.”

The settlement ends the government’s forfeiture enforcement against Empyreal, according to Thom Mrozek, a spokesman for the U.S. Attorney’s Office.

“We have resolved this matter,” he said in a statement. “The United States will not initiate a forfeiture action in District Court, and the plaintiff has agreed to dismiss the civil lawsuit with prejudice.”

However, Empyreal’s legal claims against the San Bernardino County Sheriff’s Department, demanding that deputies stop engaging in “highway robbery” against the company, remain in place.

The settlement is under review, San Bernardino County sheriff’s spokesperson Gloria Huerta said.

“Our department is engaged in ongoing discussions with our law enforcement partners, Empyreal management and the Department of Justice,” she added

San Bernardino County Sheriff Shannon D. Dicus has described Empyreal’s lawsuit as a “special-interest crusade” and a blatant attempt to “interfere with ongoing local criminal investigations.”

The Sheriff’s Department has not provided details on the investigations with which Empyreal is purported to have interfered.

The San Bernardino County Sheriff’s Department leads the Inland Regional Narcotics Enforcement Team, which also includes state and federal agencies such as the DEA and FBI, according to Alban.

Through the U.S. Department of Justice’s equitable sharing program, the Sheriff’s Department’s participation in IRNET enables it to receive up to 80% of the proceeds recovered from civil forfeitures. As a result, it would have collected about $800,000 from the federal government if the Empyreal forfeiture had succeeded.

Though both medicinal and recreational marijuana are legal in California, the federal government classifies all marijuana, along with heroin and cocaine, as an illegal Schedule I drug with a high potential for abuse and little or no medical benefits. That means an individual could be charged with a federal crime for activities that are legal under state law.

Empyreal’s lawsuit alleges that on Nov. 16, San Bernardino County sheriff’s Deputy Jonathan Franco conducted a traffic stop of a company driver for allegedly driving too close to a semi-truck on the freeway.

Franco first asked the driver what the vehicle was transporting and, after learning it was carrying cash, inquired further about the nature of Empyreal’s business, according to the complaint.

According to a copy of a search warrant obtained by the Southern California News Group, the San Bernardino County Sheriff’s Department claims it was entitled to seize $700,000 in cash from the vehicle because there was probable cause to believe a felony had been committed.

The same group of deputies, purportedly including Franco, seized $350,000 from another Empyreal vehicle on Dec. 9 without obtaining a search warrant, says the suit.

As the deputies counted the money inside the vehicle, one officer seemed disappointed, saying, “This is, uh, more small,” apparently comparing the amount of cash to that seized during the previous traffic stop, according to the complaint.