Lochte told NBC previous year that he and fellow swimmers Jack Conger, Gunnar Bentz and Jimmy Feigen were robbed at gunpoint in a taxi by men with police badges as they returned to the Olympic Village from a party on August 15.
When the scandal first made headlines last summer, the six-time Olympic gold medalist claimed that he, Jimmy Feigen, Gunnar Bentz and Jack Conger were returning to Olympic Village after a night of partying when they were robbed by a group of armed men pretending to be police officers.
The 32-year-old Olympic swimmer's criminal case has been dismissed by an appellate court in Brazil, according to USA Today.
Prosecutors could still challenge the ruling, and they have 15 days to do so. Days later, Rio police stated that the athletes had vandalized the gas station bathroom and concluded that the swimmers had fabricated their story. Lochte's lawyers have been pressing for a dismissal of the case, but a lower court had ruled 2-1 to uphold the charge. Lochte's suspension, which ended on June 30, meant he couldn't compete in the United States championships that were the selection meet for the upcoming World Championships in Budapest. "We are hopeful that the prosecution accepts the Court's decision so that this story can finally be put to rest", said Jeff Ostrow, Lochte's attorney, in a statement to ET.
The same investigation found no evidence of damage other than a poster that Lochte tore from a wall.
Under Brazilian law, the penalty for filing a false crime report is a maximum of 18 months in prison.
As details supporting Lochte's account emerged, he picked up new sponsors and took a spot on Dancing with the Stars last fall.
Lochte, whose 12 Olympic medals ranks second all-time among US swimmers behind Michael Phelps, was pilloried in the media and several sponsors cut ties with him in the wake of the incident.
Lochte's 10-month suspension from the USA national swim team over the incident ended on July 1.