The legal firm representing passengers on board the cruise liner Queen Mary 2 is to drop its proposed class action lawsuit against the ship's operators.
QM2 passengers have threatened a sit-in protest
Passengers on the ship, which docked at Rio de Janeiro on Friday morning, are to be offered a full refund, including flight transfers, if they disembark.
Capital Law told the BBC News website that it would now withdraw the threat of action against cruise firm Cunard.
The QM2 has missed three port stops following a propeller accident.
The ship, based in Southampton, in the UK, started its planned 38-day cruise around Latin America from New York.
QUEEN MARY 2 CRUISE
1. Ship departs New York 15 Jan
2. Unscheduled stop at Ft Lauderdale 17 Jan - departs then returns to port after accident - finally leaves 19 Jan
3. St Kitts: dropped from itinerary
4. Barbados: dropped from itinerary
5. Salvador: dropped from itinerary
6. Arrives in Rio de Janeiro 27 Jan
Stops at the Caribbean islands of St Kitts and Barbados and Salvador in Brazil were cancelled after the ship damaged a propeller pod while setting sail from Fort Lauderdale, Florida, on 17 January.
A statement from the law firm said: "Passengers are delighted that they have at last been dealt with reasonably and have been compensated fairly for their loss.
"Capital Law can confirm that in these circumstances it will discontinue its class action against Cunard. "