The off-duty officer forced the man to pull down his pants so that he could inspect after he was convinced that his prosthetic penis was stolen merchandise from a store.
The trans man, who has remained anonymous in the suit, felt “humiliated, intimidated and abused”.
The incident took place in a grocery store in Paterson, New Jersey earlier this year on May 12.
The police officer was allegedly working security and did have a sheriffs uniform on.
The officer approached the trans man and accused him of shoplifting.
He tried to explain that he was wearing a prosthetic penis, at which point the officer said that he would need to be inspected.
The officer then had a female cashier inspect him in a store restroom.
After realising his mistake, the officer reportedly apologised.
The victim’s attorney confirmed that they believe the officer made a genuine mistake in thinking the prosthetic penis was stolen merchandise.