I agree, it sounds like they decided it was not worth going after.
The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here. Please visit my web site: www.avanesianlaw.com for more information about my services.
It means that for whatever reason, they have decided not to pursue this matter at this time. However, because it is a voluntary dismissal, they may be able to refile it again. If you have received a discharge in bankruptcy, or are to receive one, they probably would not refile as it would be a violation of the bankruptcy discharge.
The response given is general in nature and based upon limited information. It does not and cannot replace that of a proper consultation with a qualified attorney. You should not act upon this Information alone, but should seek legal counsel prior to taking any action.
They just stopped this suit. They could come back, but right now they don't want to pay their lawyer (if he is set up at an hourly rate) either because the case isn't perfect or they don't think they can get anything from you at the moment.