The Crown Prosecution have dropped charges against the three men accused of stealing waste food from bins behind a branch of Iceland.
Questions were raised over the criminal action against north London squatters Paul May, Jason Chan and William James, after the frozen food firm said staff had not alerted police and that it had contacted prosecutors to ask why action was being taken.
Baljit Ubhey, Chief Crown Prosecutor for CPS London, said: “This case has been reviewed by a senior lawyer and it has been decided that a prosecution is not required in the public interest.
"While the decision to charge was taken by the Metropolitan Police Service, a subsequent review of the case by the CPS did not give due weight to the public interest factors tending against prosecution," he said.
"In reconsidering this case, we have had particular regard to the seriousness of the alleged offence and the level of harm done. Both of these factors weigh against a prosecution," he added.
The three men were facing prosecution over claims they took tomatoes, mushrooms, cheese and Mr Kipling cakes from bins behind a branch of Iceland in Kentish Town.
Iceland said that the store is next to a police station and that officers had attended "on their own initiative".