The Knoxville banker is withdrawing the suit filed last Wednesday in U.S. District Court against Jackson and Justin Timberlake, along with MTV, CBS and their parent company, Viacom.
The lawsuit had sought billions of dollars in compensatory and punitive damages.
Carlin alleged that she and others who watched the show during the Super Bowl (search) were injured by the performers' lewd actions when Timberlake tore off part of Jackson's costume, exposing her right breast.
The notice of dismissal filed in federal court says Carlin wants to see if "remedial measures" announced by federal regulators and the companies involved succeed in preventing similar stunts.
Carlin and attorney Wayne A. Ritchie II, who filed the lawsuit on behalf of Carlin and has represented her for free, have received phone calls and mail from hundreds of supportive parents from across the country who wanted to be included in the suit, the notice states.
In the lawsuit filed on behalf of "all Americans," Carlin charged that Jackson's exposure and "sexually explicit conduct" by other performers during the halftime show injured viewers.
Jackson apologized for the incident, saying a red lace garment was supposed to remain over her breast when an outer garment was ripped away.