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Richelle Olson previously claimed that the comedian's joke at a bingo game while filming the movie in 2007 had left her with "life altering injuries".
Olson has now dropped charges of assault and battery against the actor and NBC Universal, claiming "emotional distress" as the reason behind her case, E! reports.
"According to California case law, any injuries deriving from intentional infliction of emotional distress are recoverable. Mr Baron Cohen and those associated with the production of Brüno are accountable for inflicting serious emotional distress and the resulting injuries to Mrs Olson," her attorney Kyle Madison said.
However, footage of the alleged incident did not make the final cut of the current US box office champion.
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