DirecTV filed a notice Monday in U.S. District Court in Los Angeles that it is withdrawing its false advertising claim against EchoStar Communications [DISH].

DirecTV filed a lawsuit earlier this month alleging that EchoStar used false advertising to mislead Pegasus Satellite Television customers who receive DirecTV that they would lose their signals. Since EchoStar has agreed to stop using the ads as a result of the lawsuit, DirecTV officials said their company withdrew its claim. EchoStar also has instructed its dealers to stop using the ads.

The case will be dismissed without prejudice so that, should EchoStar resume any form of misleading advertising, DirecTV will seek appropriate relief, said Robert Mercer, a DirecTV spokesman.