"After careful consideration of the facts, both sides agreed it was not in anyone's best interest to move forward with these cases," a statement from the Colorado attorney general's office read. "The larger constitutional issues might well be decided down the road, but these cases will not be the vehicle for resolving them."
As a result of Colorado dropping its case against Phillips, the baker will also drop his lawsuit against the state. Phillips was suing the state, claiming it was "acting in bad faith and with bias" toward him.
"The state of Colorado is dismissing its case against Jack, stopping its six and a half years of hostility toward him for his beliefs," said Kristen Waggoner, an attorney for Alliance Defending Freedom who represented Phillips before the Supreme Court previously. "Tolerance and respect for good-faith differences of opinion are essential in a diverse society like ours. They enable us to peacefully coexist with each [other]."
Phillips' Masterpiece Cakeshop has been a source of national discussion since he was punished by the state for refusing to bake a cake for a gay wedding in 2012. The Supreme Court ruled in Phillps' favor last summer.
This more recent case involved a lawyer requesting Phillips to bake a gender transition celebration cake. The Christian Post reported that Phillips has received a number of targeted requests from that lawyer and other customers, including cakes celebrating Satan and cakes with sexually explicit imagery.