The Pain Relief Network had attempted to intervene to keep Dr. Stephen Schneider's clinic open. It claimed the clinic's 1,000 patients have been unable to find adequate care since Schneider's license was suspended in January.
But a judge refused Friday to grant a request by the advocacy group for a temporary restraining order preventing the Justice Department from taking action against Schneider's clinic.
On Tuesday, the group filed a voluntary motion for dismissal without prejudice of its civil lawsuit against the Department of Justice and the state of Kansas.
If U.S. District Judge Wesley Brown agrees to dismiss the action without prejudice, it could be refiled later.
The Pain Relief Network said in its motion it was seeking the dismissal "after reviewing the current posture of the case."
Schneider, who is jailed without bond, faces 34 federal charges, including four counts of unlawful distribution of a controlled substance resulting in death. He has vehemently proclaimed his innocence.
The Pain Relief Network filed the civil suit on behalf of Schneider's patients.
At the earlier hearing, Brown told a room crowded with about 40 of Schneider's patients, some of them on crutches, that if they needed care they should go to the emergency room, not the court.
In its lawsuit, the Pain Relief Network challenged the constitutionality of the Controlled Substances Act, arguing that it allows the federal government to improperly intrude in the physician-patient relationship.