The move came after BT allegedly deleted 80 per cent of the customer details it requested be saved pending a court application.
BT agreed to retain personal details of 25,000 of its customers earlier this year, so that Ministry of Sound could pursue them once an injunction on the court order was lifted.
However, the music company said that BT had "failed to preserve" the details and has deleted 20,000 of the records.
BT announced that, as per its policies, it was mandated to delete consumer data after 90 days and so had deleted 20,000 out of the 25,000 details it had been asked to provide, prompting the music label to drop the litigation.
Ministry of Sound CEO Lohan Presencer, said in a statement to BBC News: “Given that less than 20 per cent of the names remain and BT costs have soared from a few thousand pounds to several hundred thousand pounds, it makes no economic sense to continue with this application.”
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