The 30-year-old hotel heiress said that hair-extension company HairTech has admitted that it got its allegations wrong and dropped the case it filed against her in LA last August.
HairTech International principal Chris Volek had complained Hilton was seen out wearing competitors' hair extensions and that she missed a launch party for its product when she went to jail in 2007, costing the firm 6.6 million dollars in lost revenue.
Hilton had strongly denied their claims and filed a 1.7 million dollars countersuit.
The socialite, however, insists no money has been paid to HairTech to drop the suit.
"It is certainly not unusual for businesspeople to have their disagreements, but I am glad that Chris has acknowledged the hard work and dedication I put into promoting his products," the New York Post quoted her as saying.
Volek said in a statement, "The information I received from others and on which I based the lawsuit was not accurate.
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