hiltonsisters022230X17.jpgParis Hilton no longer has a $35 million hair-extension lawsuit hanging over her head.

HairTech International filed a suit last August claiming Hilton signed a multimillion-dollar contract to use and promote its fake locks, and then was photographed wearing another companies' extensions.

The company claimed they were also upset the heiress blew off their launch party in 2007 because she was in jail, costing the firm $6.6 million in lost revenue at the time, according to HairTech International principal Chris Volek.

Hilton strongly denied their claims and filed a $1.7 million countersuit, which prompted HairTech to admit it got its claims wrong, and dropped the case Tuesday.

Hilton said in a statement after the suit had been dropped:

    "It is certainly not unusual for businesspeople to have their disagreements, but I am glad that Chris has acknowledged the hard work and dedication I put into promoting his products."

Volek admitted, "The information I received from others and on which I based the lawsuit was not accurate."