Gangland figure Mick Gatto is no longer facing extortion and blackmail offences after the charges were withdrawn by prosecutors.
Restaurateur Jamal Mohammad first lodged the charges in a private prosecution against Gatto in February, alleging the 69-year-old threatened and assaulted him over two decades.
Gatto was facing 10 offences including extortion with threat to kill, blackmail, assault and producing firearms.
The Office of Public Prosecutions took over the prosecution in September but applied to withdraw all charges on Wednesday morning in Melbourne Magistrates Court.
Prosecutor Louis Andrews did not give a reason why the OPP was no longer pursuing the case.
Gatto's barrister Martin Amad made an application for costs against both the OPP and Mr Mohammad.
Mr Mohammad was not at court but Mr Andrews said the OPP was opposing the application.
Magistrate Brett Sonnet reserved his decision on costs, instead giving the parties 28 days to come to an agreement.
The parties will return to court for a contested hearing if an agreement can't be reached.
