Kia Vaughn had contended in the lawsuit filed in August in New York state Supreme Court that the comments made by Imus had damaged her reputation. The lawsuit also named various media outlets that broadcast Imus' show.
Marti McKenzie, a spokeswoman for Vaughn's attorney, Richard Ancowitz, said in a statement that Vaughn had chosen to focus on her education at New Jersey's Rutgers University as a journalism major and as an athlete with the basketball team.
"Her strong commitments to both have influenced her decision to withdraw the lawsuit at this time," the statement said.
A lawyer for Imus, Martin Garbus, said his client had paid no money to Vaughn. CBS Radio did not immediately return a message requesting comment.