Hefner wrote a letter of apology to the actress and donated to two of her favorite charities, Keep a Child Alive and the Until There's a Cure Foundation, Alba's publicist told E! Online Tuesday.
"In light of Mr. Hefner's personal apology for Playboy's unauthorized use of my photo on their cover, I have decided to discontinue my claims against them," Alba said in a statement.
"I appreciate Mr. Hefner's acknowledgment of the distress caused by Playboy's actions, and I'm happy to put this unfortunate event behind me," she continued. "This was never about money, it was about setting the record straight about something that was done without my knowledge or consent."
Playboy had asked Alba to pose for its March issue and when she refused, used a promotional shot on its cover from her film, "Into the Blue."