Kemp announced the decision in a statement declaring he would sign a new executive order regarding COVID-19 restrictions after his current coronavirus order expires on Saturday.
"I sued the City of Atlanta to immediately stop the shuttering of local businesses and protect local workers from economic instability," Kemp wrote. "For weeks, we have worked in good faith with Mayor Bottoms and she agreed to abandon the city's Phase One roll-back plan, which included business closures and a shelter in place order. Unfortunately, the Mayor has made it clear that she will not agree to a settlement that safeguards the rights of private property owners in Georgia."
Bottoms later issued a statement saying she was thankful the lawsuit was dropped.
"From the start of this pandemic, my only goal has been to help save lives," Bottoms wrote. "While it is unfortunate that the governor seeks to intentionally mislead the people of our state by issuing a woefully inaccurate statement regarding our good faith negotiations and the city's reopening recommendations, I am grateful that this lawsuit has been withdrawn and the time and resources of our city and state can be better used to combat COVID-19."
Kemp filed the lawsuit in July, challenging Bottoms' decision to require face masks be worn in public and to revert the city to the first phase of its re-opening guidelines, closing restaurant dining rooms and calling on residents to only leave their homes for essential activities.
At the time he also signed an executive order overruling local governments that enacted ordinances requiring face coverings and prohibited similar orders in the future and asserting the state's right to impose its own less-stringent guidelines, in which residents are merely "strongly urged" to wear masks "as practicable" in public.