By Amber Goodhand - Breaking Celebrity News Reporter

Charlie Sheen has dropped his extortion lawsuit against his New York City gal pal and [expletive] star Capri Anderson.

Breaking Celebrity News has learned the former Two and a Half Men star nixed the lawsuit last Friday after numerous unsuccessful attempts to serve Anderson.

Anderson - real name Christina Walsh - was found naked in NYC's Plaza Hotel bathroom in October after police were called and she accused Sheen of assault and battery, claiming he threw a lamp and threatened to kill her while on a booze and cocaine fueled bender.

Sheen fired back with an extortion lawsuit, claiming the high-priced escort had swiped his $165,000 Patek Philippe watch and demanded $1 million in return for her silence about what really happened in that hotel room.

"This lawsuit is nothing more than a public relations stunt," Anderson's attorney, Keith Davidson, previously told Breaking Celebrity News.

Monday night the adult film star tweeted, "Today is a day I can finally move forward and I am most content :)"