Gagosian Withdraws Suit Against Ronald Perelman

The art dealer Larry Gagosian has withdrawn a lawsuit he filed last month against the billionaire investor Ronald Perelman over payments involving several works of art. But the legal battle of the titans - and former friends - is not over. Mr. Perelman is still pursuing his own suit against Mr. Gagosian, charging that he cheated him out of millions of dollars.

Mr. Perelman, who bought a granite “Popeye” that the artist Jeff Koons was working on, said that Mr. Gagosian had failed to disclose “secret contract provisions” between the gallery and Mr. Koons that prevented Mr. Perelman from earning a fair return on his artistic investment. In a letter sent to State Supreme Court in Manhattan, Mr. Gagosian's lawyer, Matthew Dontzin, explained that the purpose of Mr. Gagosian's lawsuit had been to establish that he owned the works in question. Since the Perelman complaint concedes that is the case, Mr. Dontzin said, there is no need for Mr. Gagosian to continue his s uit. Mr. Perelman's lawyer, Keith Fleischman, declined to comment.

A version of this article appeared in print on 10/20/2012, on page C2 of the NewYork edition with the headline: Gagosian Drops Suit Against Perelman.