Mr Easdale, a member of the Rangers football board, had threatened to sue season ticket holder Craig Houston.
Mr Houston is the founder and public face of the Sons of Struth protest group that has campaigned for boardroom change this season.
He received a summons and a claim for £200,000 of damages for comments that were made by third parties on the Sons of Struth Facebook page.
The 41-year-old, who runs his own cleaning company, had refused to sign a gagging order that would have ended the action.
And the father-of-two admitted that he could have lost his business, his home and been declared bankrupt if he had lost the case.
Houston had said: "The claims relate to things posted on our Facebook page by other people.
"There is nothing I can do about that.
"The only way I could guarantee having no further problem would be to close the Sons of Struth Facebook page.
"But in spite of the threat I am not tempted to do that. This is about what is right and wrong. Morally and legally I believe I have a strong case.
"But I can't be certain of victory and as a father with two children the consequences of losing are terrifying. I stand to lose everything. I'd be ruined."
There was a possibility that money that remained in the Rangers Fans Fighting Fund, set up during the Glasgow club's financial difficulties two years ago, could have been used to provide financial support.
But a post on the Sons of Struth Facebook page last night read: "I have this evening received written confirmation that no further action will be taken against me by Alexander Easdale."
Greenock businessman Easdale, who runs McGill's bus company along with his brother James, a non-executive director at Rangers, instructed his lawyers to act after "libelous" online remarks and "personal slurs".
He had said: "I don't want to go to court but I can't allow this stuff to continue. He's not being picked on. This is an action I must take.
"If any libelous comments are made on any website and are brought to my attention they are acted upon by lawyers."