A former Facebook marketing partner who accused the social media giant of revoking its Facebook and Instagram licenses under false pretenses has agreed to dismiss a lawsuit against the company.

Stackla Inc. and Facebook filed a joint stipulation to dismiss Monday in the U.S. District Court for the Northern District of California. The San Francisco-based content marketer's business model leverages artificial intelligence to extract user-generated social media posts for its clients from Facebook's application programming interface. When Facebook kicked the company off its platforms in August over privacy concerns, Stackla alleged the move would crush the third-party marketer, and was a pretext to snuff out more bad press after Facebook's Cambridge Analytica scandal.

Neither DLA Piper's Jeffrey Tsai in San Francisco, who represents Stackla, nor Facebook counsel Sonal Mehta of Wilmer Cutler Pickering Hale and Dorr in Palo Alto, California, responded to a request for comment at the time of publication.

Lawyers for Stackla alleged it received a cease and desist letter from Facebook one week after a Business insider article falsely accused it of violating Facebook's privacy guidelines. In the letter, Facebook accused Stackla of violating the federal Computer Fraud and Abuse Act and the California Comprehensive Computer Data Access and Fraud Act, as well as Facebook and Instagram's terms of use.

Stackla denied the allegations and contended that Facebook improperly invoked the laws against Stackla and violated their "good-faith partnerships and agreements."

U.S. District Chief Judge Phyllis Hamilton of the Northern District of California said last month that she was unconvinced of any wrongful motivations. In a bench ruling, she denied Stackla's motions for a temporary restraining order and preliminary injunction that would restore its access to Facebook and Instagram.

"I'm not persuaded by the pretextual argument, and I think [Facebook is] entitled to rely on the Business Insider article as a basis to initiate further inquiry," Hamilton said at the Sept. 25 hearing, where she suggested Stackla and Facebook work together to resolve their issues.

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