It was a lawsuit the airline was never going to win and it appears that they themselves have figured that out. 

Asiana Airlines says they have decided NOT to pursue a lawsuit against KTVU in San Francisco.

Monday, the airline said they were going ahead with their lawsuit against the station after claiming that it damaged their reputation. 

I think after looking at their crashed airliner sitting at the end of the San Francisco Airport runway, they might have seen the irony in that lawsuit.  

It's been dropped...giving KTVU their first good news in the past 6 days.