Zango explained in a blog posting that it dropped the suit because PC Tools made changes to its software and no longer removes or blocks its software.
PC Tools hailed the move as a victory, claiming that Zango conceded defeat. The security vendor linked the withdrawal to a preliminary ruling, when a judge denied Zango's demand for a temporary injuctino against PC Tools.
PC Tools had previously dismissed the legal case as a cry for attention. The company was in the process of reclassifying the adware application prior to the lawsuit.
The tactic certainly isn't strange to Zango, which has a better track record of filing lawsuits than it has of waiting for a verdict. It dropped cases against a group of seven distributors, claiming that it interfered with a federal case against some of the individuals.
Zango has previously dropped charges against ZoneLabs, a subsidiary of Check Point, after the security vendor stopped labelling Zango software 'high risk spyware'.
The Federal Trade Commision last year fined Zango US$3m for unfair and deceptive business practices. The firm at the time promised to stop its illegal practices, but security experts have repeatedly charged that the firm continues to violate the terms of the settlement.
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