Reuters reports that Mitchell Garabedian, the attorney for the alleged victim, said his client put in paperwork this week to drop his civil complaint against Spacey that accused the actor of "explicit sexual behavior and lewd and lascivious conduct".
Garabedian declined to comment further on the dismissal, citing the pending criminal case prosecutors filed a year ago against Spacey.
Spacey still faces a criminal charge.
Spacey, whose real name is Kevin Fowler, has been charged with indecent assault and battery.
Jackson has previously said the man is lying in the hopes of winning money in a civil case against Spacey.
The AP reported that the suit was dismissed "with prejudice" and that it can not be refiled.
The legal development could have significance for the criminal case against Spacey, legal experts say.More news: Japan orders over a million to evacuate amid torrential rains
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"Any settlement could not be conditioned on a refusal to cooperate with the prosecution", said Korman. The accuser's lawyer did not provide a reason explaining the decision for the suit's dismissal.
The civil suit was likely filed before completion of the criminal case because the three-year statute of limitations is approaching, added Yannetti.
He said, "I can promise you this: If I didn't pay the price for the things we both know I did do, I'm certainly not going to pay the price for the things I didn't do".
As we reported, journalist and former WCVB-TV news anchor Heather Unruh accused the House of Cards star of plying her then-18-year-old son with alcohol before reaching into his trousers to grope him at the Club Car Restaurant in July 2016. In the rise of the #MeToo movement, the House Of Cards actor was accused of several acts of sexual misconduct including one by a busboy who claimed Spacey indecently groped him at The Club Car in Nantucket.
If the phone is not located by Monday, the District Court judge has said he will call on Little to testify about it.
Defense attorneys questioned why the accuser erased certain text messages from the phone before turning it over to police.