The state is out of the Elizabeth Daly lawsuit. A federal judge has dismissed the state in the $40 million suit brought by the UVA student. Judge Henry Hudson of Richmond federal court dismissed the two claims against the state and will rule in a couple of weeks whether to throw out the entire lawsuit. Ten counts against the ABC agents remain. Daly is the UVA student arrested by ABC agents last year in the parking lot of a local grocery store. The officers thought she had alcohol as an underage person. She had sparkling water. Charges against her were dropped and Daly filed a lawsuit against the state and seven ABC agents.