The surprise announcement came today as 42-year-old Meshael Alayban was to face arraignment on a charge that could have brought as many as 12 years in prison.
The charge was filed after a Kenyan maid alleged Alayban had taken away her passport and forced her to work long hours without pay.
Prosecutors now say further investigation did not corroborate the allegations.
The maid escaped from Alayban's condo in July, got on a bus and told a passenger her story, authorities said. The passenger helped her contact police.
But District Attorney Tony Rackauckas said the circumstances were closer to slavery. Alayban had been free on USD 5 million in bail posted by the Saudi consulate.
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