Court records show Bynes entered a civil compromise to end the case and her attorney informed a Los Angeles court on Thursday. Bynes was charged with leaving the scene of accidents in April and August without providing the proper information.
Defendants in certain California misdemeanor cases are allowed to enter civil settlements to resolve criminal cases.
City Attorney's spokesman Frank Mateljan (mah-tell-JIN') says prosecutors objected to the dismissal, noting other instances in which Bynes has been cited for driving without a license and her pending driving under the influence case.
Bynes rose to fame starring in Nickelodeon's "All That" and has also starred in several films, including 2010's "Easy A."