In a statement late Wednesday, Paradise Valley town attorney Andrew Miller cited a lack of cooperation from Latarsha McCray, the mother Hardaway's 8-year-old daughter.
McCray had filed the complaint that had resulted in the charge.
"At this time, our office is unable to proceed with this matter based on the current level of cooperation we are receiving from Ms. McCray and our inability to secure her attendance at trial," Miller said.
Miller said McCray "sought assurances from our office as to the penalties faced by Anfernee Hardaway, which we were not willing to do."
In a complaint filed Nov. 20, McCray, who had flown from Memphis to discuss the couple's daughter, told police she went outside intending to sleep in his car outside Hardaway's house in the affluent Phoenix suburb after an argument.
McCray told authorities Hardaway came outside with a handgun at his side and yelled at her to go back into the house. He then followed her inside making "clicking" noises with the gun, she said.
McCray told police that although Hardaway didn't point the handgun at her or verbally threaten her, she felt intimidated.
The decision to charge Hardaway was made Dec. 14, and he immediately claimed his innocence.
Hardaway has said that he hasn't had a relationship with McCray for eight years, and that the argument concerned his desire to develop a relationship with his daughter.
Hardaway had missed the first 31 games of the season while recovering from knee surgery. He made his first appearance in Phoenix's 20-point homecourt loss to Minnesota on Sunday.
After the game, he said there was a good chance the charge would be dismissed.
"I've always said from the beginning that I was innocent and I had no intentions of intimidating anybody with a weapon at all," Hardaway said at the time. "It was a misunderstanding."
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