Mariah Yeater alleged that she fell pregnant after having sex with the 'Never Say Never' singer following a concert in October 2010.
Bieber denied Yeater's accusations and insisted that he had never even met her, but later agreed to take a DNA test to prove that he was not the father of her 3-month-old son Tristyn.
Despite claiming that she had evidence of their fling, Yeater chose to dismiss the paternity suit last week, according to TMZ.
It is believed that Yeater's lawyers Lance Rogers and Matt Pare quit the case after Bieber threatened to counter sue.
Yeater previously said that she was "very scared" of taking legal action against the 17-year-old.
She accused an ex-boyfriend of fathering her baby before firing the claims at Bieber.