Jurors in North Carolina acquitted the former presidential candidate on one count of accepting illegal campaign contributions and deadlocked on five other felony counts. The judge declared a mistrial.
Prosecutors will not seek to retry Edwards on the five unresolved counts, according to a U.S. Justice Department statement.
Assistant Attorney General Lanny A. Breuer, who oversees the agency's criminal division, said prosecutors knew the case, like all campaign finance cases, would be challenging. But he said it is "our duty to bring hard cases" when warranted.
"Last month, the government put forward its best case against Mr. Edwards, and I am proud of the skilled and professional way in which our prosecutors.... conducted this trial," he said.
Edwards was accused of masterminding a scheme to use about $1 million in secret payments from two wealthy political donors to hide his pregnant mistress as he sought the White House in 2008.
Edwards' lawyers , Abbe Lowell, Allison Van Laningham and Alan W. Duncan , said in a joint statement that they are pleased with the government's decision not to seek a second trial that they believe would have had the same outcome.
"While John has repeatedly admitted to his sins, he has also consistently asserted, as we demonstrated at the trial, that he did not violate any campaign law nor even imagined that any campaign laws could apply," they said. "We are very glad that, after living under this cloud for over three years, John and his family can have their lives back and enjoy the peace they deserve."