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Medal of Honor Recipient Drops Defamation Lawsuit

A Medal of Honor recipient has dropped a lawsuit against his former employer in which he accused the defense contractor of ruining his chances of landing work at another company by claiming he was mentally unstable and a problem drinker.

Marine Sgt. Dakota Meyer said in a statement to The Associated Press on Thursday that he is dropping the defamation against BAE Systems OASYS and a former supervisor, Bobby McCreight, because they settled their differences amicably.

The company says it is pleased the matter is resolved. No terms were disclosed.

Meyer filed the lawsuit in San Antonio last month alleging the company undermined him after he expressed disapproval that it had pursued selling certain weapon components to Pakistan. Meyer received the Medal of Honor for his actions during a 2009 battle in Afghanistan.

Jean Meyer, the Marine's 81-year-old grandmother, told FoxNews.com last month that allegations regarding her grandson were unfounded.

"I've known him for all of his life and I've never, ever known him to be a drinker," she said. "That's all I can tell you."

Meyer, of Green County, Kentucky, said she helped raise the veteran along with his father, Michael.

"That boy has never done anything that we had to get on him about or punish him for -- nothing," she said. "You couldn't have asked for a better boy growing up and he still is. He would do anything in the world for anybody."

Meyer was employed as a construction worker in Kentucky when he was awarded the Medal of Honor. In September 2009, a then-21-year-old Meyer defied orders by charging five times in a Humvee into heavy gunfire and provided cover for his team, allowing many to escape likely death. He killed at least eight Taliban insurgents.

The Associated Press contributed to this report.