UPDATE: Ray Davis has been pardoned in Pakistan after payment of compensation to victims' families, according to Sky News.
Pakistani TV says Davis has been flown to London. CNN says he remains in Pakistan, but the families have declined to press charges (via @mpoppel).
Davis paid $2.34 million in blood money, according to Breaking News.
EARLIER: Pakistan has indicted CIA contractor Raymond Davis on two counts of murder, according to police officials (via Andrea Mitchell).
This will further complicate efforts by the U.S. to get Davis out of the country.
On Monday Pakistan's high court declined to intervene in Davis' case, leaving a local court to decide whether he has diplomatic immunity.
Davis is accused of shooting two armed men when they approached his car in Lahore.
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