The Swiss bank pursuing legal action in the US against whistleblowing website Wikileaks has dropped its lawsuit days after a judge reversed a decision to shut down the website for publishing leaked documents.

Julius Baer had been pursuing court action against Wikileaks after the website published documents about the bank's offshore accounts.

In court papers filed yesterday the Swiss bank did not give a reason for dropping its lawsuit and still reserves the right to refile it later.

The decision by Julius Baer to drop the lawsuit comes following a volte face on Friday by US judge Jeffrey White who reversed a previous injunction ordering the closure of Wikileaks.

Last month, judge White ordered the removal from Wikileaks of the documents relating to Julius Baer and the closure of the website.

This came after the bank sued Wikileaks and San Mateo company Dynadot, trying to stop the alleged "unlawful dissemination of stolen bank records and personal account information of its customers".

Dynadot, which provided Wikileaks' domain name in the US, agreed to disable the website in exchange for the bank removing it from the lawsuit.

However, the bank's lawsuit backfired when dozens of lawyers from free speech and civil rights groups rallied to support Wikileaks.

Judge White overturned the previous order after acknowledging that the injunction raised serious issues relating to the US constitution's first amendment, which protects freedom of speech.

Wikileaks reinstated its California-hosted website on Friday and also posted a swathe of new documents supplied by Rudolf Elmer, a former employee of Julius Baer.

The operation's international websites, such as wikileaks.be, were unaffected by the US lawsuit.

· To contact the MediaGuardian newsdesk email editor@mediatheguardian.com or phone 020 7239 9857. For all other inquiries please call the main Guardian switchboard on 020 7278 2332.

· If you are writing a comment for publication, please mark clearly "for publication".