A murder indictment against Mechele Linehan has been dismissed by Judge Philip Volland, court records show.
The decision was the result of a motion by Linehan's defense attorney to throw out the charges.
Linehan was accused of conspiring to kill her former fiance in 1996 for $1-million of insurance money.
A jury convicted her of conspiracy in 2007, but the Alaska Court of Appeals overturned the verdict.
The court ruled the jury should not have heard a letter Kent Leppink wrote days before his death. In the letter Leppink said to make sure Linehan was prosecuted if anything happened to him.
In his ruling, Judge Volland said that the grand jury that indicted Linehan should not have been told about the letter, and the judge wrote "... Mr. Leppink's "Letter from the Grave" and accusatory statement was so prejudicial that it is likely that it was the decisive factor in the grand jury's decision to indict Ms. Linehan."
Linehan was scheduled to go on trial next April on a new indictment issued after the appeals court overturned the conviction.
Assistant District Attorney Paul Miovas told Channel 2 News Wednesday evening that prosecutors have the option of seeking another grand jury indictment, but Movias says that decision has not been made yet.
Linehan's defense attorney, Cynthia Strout, said "We are obviously pleased with this decision and feel vindicated by it. I guess all we would say is we feel this is the first step on the road to justice for Mechele".
Channel 2 News contacted Mechele Linehan by phone Wednesday night, but she declined comment.