Ralls Corporation issued the lawsuit two weeks ago, claiming that the Committee on Foreign Investment in the United States (CFIUS) had violated the US constitution and the Administrative Procedure Act.
In August, Chinese real estate firm Yeland Corporation pulled out of a deal to buy the sites from Ralls, citing concerns over the approval process.
In July, projects were cancelled by a national security panel in the US Treasury citing "national security risks" and ordering Ralls to cease all work. The panel also produced an amended order on 2 August prohibiting the sale of the projects, which are within five miles of restricted airspace.
The CFIUS said it only found out about the Yeland deal via an article in Windpower Monthly.
However, Ralls has now dropped the lawsuit following an agreement with the Treasury panel on a "resumption of certain preliminary construction activities".
Earlier this year, Ralls Corporation bought the rights to four companies, which held land rights to build wind farms in Oregon.
However, shortly after Ralls acquired the firms, the US Navy expressed concerns with regard to the location of one of the projects. Ralls says that it agreed to move the farm at its own expense, but was still served with notice by CFIUS.