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He said he still intended to charge executives with aiding and abetting prostitution if an ad led to a South Carolina prostitution case.

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The chief of the San Francisco-based company also questioned why his Web site, and not other outlets containing similar material, was targeted. The Republican Attorney General, who plans to run for governor of South Carolina insaid he went after Craigslist at the behest of local law officers who call it the No. Both sides later agreed that McMaster would not pursue criminal charges while the federal lawsuit moves forward.

A spokeswoman for Craigslist did not immediately respond to a message seeking comment.

McMaster launched his inquiry in the wake of the arrest of a former Boston medical student charged with killing a masseuse he met on Craigslist. Philip Markoff has pleaded not guilty.

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Since the dustup in South Carolina began, there have been several arrests in North Carolina concerning sex-related Craigslist. Last week, more than a dozen people were arrested at motels along Interstate 77 in North Carolina after authorities discovered sex advertisements on the Web site.

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And in June, a North Carolina man was charged with posing as a police officer and raping a South Carolina woman he met using Craigslist. In Maryland, a man pleaded guilty to selling sex with several underage teenage girls through on Craigslist.

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