He told the New York Daily News newspaper: "She's pleased this litigation is over. She's moved on with her life and other endeavours."
The former 'Two and a Half Men' actor claimed she had stolen a $165,000 Patek Philippe watch during the eventful night, during which he was found covered in cocaine.
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Charlie has had an eventful year, releasing a song with Snoop Dogg and moving two ######## stars - known as his Goddesses - into his house, as well as waving a machete in public and drinking a concoction known as Tiger Blood.
Keith Davidson, Christina's lawyer,
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Charlie Sheen has dropped an extortion case against ######## star Capri Anderson.
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He said at the time: "She fabricated a sensational tale about being assaulted, battered and held against her will, and used that fictional story as a basis for an extortion plot."
Keith also claimed Christina never even received the copy of the lawsuit, which was filed in November last year.
The 45-year-old actor was suing the adult film actress - real name Christina Walsh - claiming he did not "assault, batter or threaten" her while the pair were in a New York hotel room together last year,
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