Los Angeles court records show the actress-singer's suit against Kimberly Smiley and her daughter Alexis Smiley was dismissed Monday. The dismissal prevents Rimes from re-filing the case.
Rimes sued the women in August 2012 claiming they recorded a phone conversation with her and posted it online. She said the recording damaged her reputation and relationships, and caused her emotional distress.
Kimberly Smiley denied wrongdoing in an interview after the suit was filed.
Steve White, an attorney representing the Smileys, says the two sides resolved their differences and he could not comment further.
Rimes' lawyer, Larry Stein, was not immediately available to comment.