A filing in federal court in Manhattan said the plaintiff, referred to as Jane Doe, voluntarily dismissed the case with prejudice, meaning she cannot bring it again.
Combs is in a Brooklyn jail awaiting a scheduled May 5 criminal trial on racketeering and sex trafficking charges.
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The Doe lawsuit was the only one to name Carter as a defendant, and he had vociferously denied the woman's claims.
Carter said the case also caused trauma for his wife Beyonce, and their children.
“We will continue to fight these baseless claims and hold those responsible,“ the lawyers said. “This is just the first of many that will not hold up in a court of law.”
She said the alleged incident caused depression that led to post-traumatic stress disorder and her being “largely withdrawn from society.”
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