Microsoft has dropped its lawsuit against Vitalwerks Internet Solutions that claimed the privately held web services company didn't take the necessary steps to prevent its systems from being used by cybercriminals.

A settlement was reached between the two companies, which was confirmed by Microsoft on June 30 as it debuted an operation to take control over infected PCs from hackers.

The software company said that the criminals were using Vitalwerks servers for communications, according to Reuters.

Microsoft's operation went after malicious software known as Bladabindi and Jenxcus, which likely affected millions of Windows PCs all over the world.

Microsoft was given an order from a federal judge in Nevada to launch the operation, saying to the court that it would be able to siphon off criminal traffic without affecting legitimate users from using the Vitalwerks service known as No-IP.com.

Microsoft's Digital Crimes Unit said to the court that it didn't directly seek help from Vitalwerks since the company failed to cooperate with similar requests from other firms to stop malicious traffic, according to Reuters.

Vitalwerks announced this week that the operation disrupted service to over 1.8 million customers for a number of days. They claim that the interruption could have been prevented if Microsoft had asked the company for assistance.

"When we notice activity, we act on it," said Vitalwerks Vice President Dylan Zigenis, according to Reuters. "When we are approached by outside parties, we look at the evidence and we take action when appropriate."

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