The charges against Lt Anderson were brought after four platoon members were convicted of killing Iraqis in the Sadr City area of Baghdad.
Investigating officers said that all charges against Lt Anderson had been dismissed and no further inquiries would be carried out.
"Today's a pretty good day," Lt Anderson told the Associated Press.
"Right now, shock and awe is pretty much still in effect."
He had faced a possible life sentence if convicted on two charges of murder and conspiracy to commit murder.
He also faced charges of dereliction of duty, giving a false statement, and conduct unbecoming an officer.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/world/middle_east/4502644.stm
Note: http://news.bbc.co.uk/g...
