WINNIPEG - Two Ontario women who were traumatized by a beheading on a Greyhound bus have dropped their lawsuit against the company.

Kayli Shaw and Debra Tucker were on the bus in central Manitoba in July 2008 when another passenger -- Vince Li -- attacked his seatmate.

Passengers fled and police surrounded the vehicle as Li cut up and cannibalized Tim McLean's body.

Shaw and Tucker accused the company of not providing adequate security and of leaving them with anxiety, depression and post-traumatic stress.

Greyhound denied the accusation and said it could not be sued under Manitoba's system of no-fault vehicle insurance.

Shaw, who is from London, and Tucker, who is from Port Colborne, have discontinued their lawsuit; however, Tim McLean's family is still pursuing similar legal action.