The actor - whose 16-year-old son Jett died during a family holiday to the Bahamas in January 2009 after suffering a seizure - decided against pursing action against two people who were accused of trying to extort $25 million from the `Pulp Fiction` star and his wife as he has already suffered considerable "emotional distress".
Neil Braithwaite, Chief Counsel in the Office of the Attorney General said: "The defendants have been discharged. Mr. Travolta is no longer interested in pursuing the matter because it has caused his family great emotional distress."
Paramedic Tarino Lightbourne - who was one of the medical team who treated Jett before he died and his co-accused, former Senator Pleasant Bridgewater, allegedly demanded $25 million from the `Grease!` star and threatened to sell a story claiming he and his wife Kelly Preston "intentionally killed" their son.
It is believed the 56-year-old star decided against continuing the case because he would be expected to give evidence in court again.
John had originally testified against the pair last October, but a new trial had to be ordered after Senior Justice Anita Allen - who was overseeing the case - said she was forced to make the decision after a speech broadcast on the TV and radio hinted the jury would acquit one of the defendants.
The jury was still deliberating over their decision when politician Picewell Forbes told an audience at a Progressive Liberal Party convention Bridgewater was a "free woman".
Immediately after Forbes made the claim, his party`s deputy chairman-elect, Alex Storr, apologised, announced the information was incorrect and no verdict had been issued.
However, the judge felt she had to dismiss the jurors and order a new trial.
The group had spent a month listening to the case.
Both defendants pleaded not guilty to charges of attempting to extort and conspiring to extort by means of threats.
John - who has a 10-year-old daughter Ella Bleu with Kelly - announced earlier this year that the couple are expecting their third child.