The release comes as Falcao is still battling legal problems in Brazil stemming from a 2002 incident. After a fight between two groups broke out, Falcao was charged and sentenced to 24 months of house arrest.
After eight months, Falcao moved homes and his lawyer advised him he'd be alright serving his time at the new home. However, upon returning to the original town following his UFC debut last year, Falcao was arrested and has had on-going issues with the authorities in getting it cleared up.
According to MMAJunkie.com, Falcao's camp believes all of the charges will be dropped by September, and that this release could be temporary.
But for now, Falcao is out of the organization and out of a fight in his home country when the UFC returns in August.
Penick's Analysis: They may have run into issues with booking Falcao on the Rio card with local authorities, and that could be a factor into this. That's just speculating, of course, but his camp says they understand why the UFC made this move and they're hoping he'll be back sooner rather than later, so there are extenuating circumstances for the release. It's unfortunate for him and for Lawlor, who now will hope to get on another card sometime soon.