Diab, his wife and two young children have filed a notice of action in Ontario Superior Court seeking tens of millions of dollars for alleged abuse of process, infliction of emotional distress and other claims.
The assertions have not been proven in court and the federal government has yet to file a response.
The RCMP arrested Diab in 2008 in response to a request from French authorities who suspected his involvement in the 1980 bombing of a Paris synagogue, an accusation he has always denied.
Following long court proceedings, Diab was extradited to France where he spent three years behind bars, including time in solitary confinement.
In January 2018, French judges dismissed the allegations against Diab and ordered his immediate release.