Best Buy Co. Inc. has dropped its false advertising lawsuit against Ultimate Electronics after Ultimate agreed to discontinue claims that it shopped the competition to offer the lowest prices.

Richfield-based Best Buy sued Ultimate Electronics' parent company, Ultimate Acquisition Partners, in April for false and misleading advertising, deceptive trade practices and violations of consumer fraud protection in U.S. District Court in Minneapolis.

Best Buy said that for at least the past two years, Ultimate Electronics claimed it had shopped Best Buy and other retailers and had adjusted prices daily to ensure it had "the lowest electronics prices period."

Best Buy and the Better Business Bureau of Minnesota and North Dakota researched the claims and reported that Ultimate Electronic's prices often were higher than Best Buy's.

Ultimate Electronics, based in Thornton, Colo., denied the charges in court filings.

In the agreement filed Friday, Best Buy agreed to dismiss the suit, and Ultimate did not admit to any wrongdoing.

The parties agreed to pay their own legal costs.

JACKIE CROSBY