The heirs of Darrell "Wayne" Perry, whose songs include Tim McGraw's "Not a Moment Too Soon," had alleged that their aunt said she had been healed of breast cancer through prayer and faith, and that she would heal their father the same way.
Darlene Bishop, who preaches nationwide, denied that she ever tried to stop her brother from receiving medical treatment.
Perry died of throat cancer in 2005 at age 55.
Bishop is co-pastor of Solid Rock Church, known for its 60-foot-tall statue of Jesus along Interstate 75 just north of Cincinnati. The suit against her was dropped Friday.
Perry's son, Justin Jones, of Middletown, said his aunt has agreed to put him in charge of administering the lucrative family trust.
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