Sidney Selby did not appear in Manhattan Criminal Court on Tuesday when prosecutors agreed to have his case sealed.
Prosecutors and Selby's lawyers agreed to an arrangement that generally leads to charges being dismissed if the defendant stays out of trouble for six months. But it's unusual for a case to be sealed immediately.
Lawyer Stacey Richman says she's happy her client was exonerated.
Police said in September the "Panda" performer waved a handgun during a road rage dispute while riding with friends in a hired car.
But the 19-year-old wasn't charged with a gun crime, and his lawyer said no gun was ever found.