Stacey Betts, who initially filed the lawsuit last summer, filed documents last week asking the court to dismiss her case, reported TMZ.
The mother, who does not have a lawyer, says she still believes in the merits of her case however it has now been dismissed.
Earlier, Betts claimed that her hearing had been permanently damaged after she took her daughter to the teen idol's concert on July 14, 2010.
"I was injured by a sound blast that exceeded safe decibel levels. I suffer hearing loss, tinnitus and hyperacusis in both ears," she had said in the lawsuit.
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