Capri Anderson, also known as Christina Walsh, was at the centre of a Sheen scandal back in October (10) when cops were called to the star's suite at The Plaza hotel in New York amid reports of a disturbance.
She alleged the former Two and a Half Men star was violent and trashed the room before he was hospitalised suffering ""an adverse allergic reaction to medication"".
The furious actor later accused her of stealing his watch and filed a lawsuit alleging Anderson attempted to extort him with her claims. However, he is said to have dropped the lawsuit on Friday (29Jul11).
Anderson's lawyer, Keith Davidson, tells the New York Daily News, ""She is pleased the litigation is over. She has moved on with her life and other endeavours.""