A sex discrimination case against Lord Alan Sugar and Apprentice winner Lee McQueen has been dropped.
Hanna Sebright, 46, has claimed that sexist remarks were made to her while she was working for Amscreen.
Lord Sugar, who was recently appointed as the government’s enterprise tsar, was chairman of Amscreen until July this year.
Ms Sebright made a claim of unfair dismissal and sexual discrimination against Lord Sugar, his son Simon, Lee McQueen and Sean Keenan.
She joined the company when her business was taken over by Lord Sugar’s company, and was made managing director, where she earned £70,000 a year.
But Ms Sebright says she was forced out of the company by being constantly undermined by Lord Sugar and Mr Sugar.
She also claimed that she began to wear more modest clothing to work when Mr McQueen, allegedly described her as "heavy-breasted”.
David Fraser, spokesman for Lord Sugar, said the case had now been dropped.
In a statement he said: "Hanna Sebright, a former employee of Amscreen Group Limited, of which Lord Sugar was chairman until July 1, 2009, has withdrawn all claims raised in London East Employment Tribunal against Amscreen and the four individual named respondents, including Lord Sugar.
"In particular, Ms Sebright now accepts that the claims she raised against Lord Sugar in his personal capacity were entirely without foundation."
Bedford Law who represent Ms Sebright have not confirmed the case had been dropped.