The ex-Spectrum SportsNet LA host alleged that Walton sexually assaulted her in 2014 while he was an assistant coach with the Golden State Warriors. She filed a request for dismissal with prejudice, meaning she cannot sue Walton again concerning the same issue.
"I can confirm we received the dismissal and it's nice to see that it was voluntarily and permanently dismissed by the claimant," Walton's attorney, Mark Baute, said in a statement obtained by Tania Ganguli of the Los Angeles Times.
Kings general manager Vlade Divac had no previous knowledge of the legal issues facing Walton when he hired him earlier in April, a source told The Athletic's Sam Amick.
In August, a joint investigation by the NBA and Kings concluded that there was "not a sufficient basis to support the allegations." Investigators tried to interview Tennant on multiple occasions, but she declined to participate.
There is no sign that the parties reached a settlement in the lawsuit.
Walton is in his first season as the Kings' bench boss after spending the previous three seasons at the helm of the Lakers.