The owners of Red Issue fanzine will sue Greater Manchester Police after 1,600 copies were confiscated prior to the Manchester United-Liverpool match last month.
Independent of United, the 258th issue was confiscated prior to the north-west fixture because it featured a spoof Ku Klux Klan cut-out-and-keep hood on its back page bearing the words "Suarez is innocent" and "LFC".
Supporters carrying a copy were not permitted through the turnstiles unless they handed over it over to police.
But the Crown Prosecution service announced on 24 February they wouldn't take against the "potentially offensive image" after the GMP claimed it would fuel tensions between supporters in light of the Patrice Evra-Luis Suarez race row.
Red Issue last week revealed that the complaint over the fanzine stemmed from the club:
Suarez received an eight-game ban and £40,000 fine for racially abusing Evra at the reverse fixture in October, and the Uruguayan then refused to shake the racially-abused left-back's hand prior to the February 11 fixture.
The fanzine pleaded for solicitor advice on their sanctuary website shortly after and received overwhelming feedback from users in light of the copies being seized.
Manchester Evening News reported a spokesman for Red Issue to have said: “They took 1,600 copies from us in what was a big game for us. We managed to get them back on sale for the Ajax match along with some we had reprinted, which incurred extra costs.
However...
“We won’t know the full impact until the next issue is out but it will have cost us. What GMP did was ridiculous and against the very laws they are there to uphold.”
In charge of the league fixture, Chief Superintendant Mark Roberts maintained his officers had to act because of an intensified match-day atmosphere.
Red Issue has been sold at Old Trafford and a number of away grounds since its formation in the late 1980s, and it is largely recognised as being the instigator of United supporters' 2010 'green and gold' protest against owner Malcolm Glazer.