Drags out former sources of legal action (7)
I believe the answer is:
extorts
'drags out' is the definition.
'former sources of legal action' is the wordplay.
'former' becomes 'ex'.
'sources of legal action' becomes 'torts'.
'ex'+'torts'='EXTORTS'
(Other definitions for extorts that I've seen before include "squeezes" , "Obtains by force or intimidation" , "Obtains by coercion" , "Threatens for money" , "Obtains money with menaces" .)