Story highlights Gov. Roy Cooper said the new law was "not a perfect deal"

The lawsuit was brought by the Obama administration

Washington (CNN) The Department of Justice has filed to dismiss its lawsuit against North Carolina over the state's so-called bathroom bill.

lawmakers reached a compromise last month and The decision comes after North Carolina Gov. Roy Cooper and GOPlawmakers reached a compromise last month and repealed a controversial law -- known as House Bill 2 -- that required transgender people to use public restrooms that corresponded to the gender on their birth certificates.

The move was meant to end an outcry that caused businesses to leave the state and major sporting events and concerts to be canceled.

"For over a year now, House Bill 2 has been a dark cloud hanging over our great state," Cooper said on signing the legislation that repealed the law. "It has stained our reputation. It has discriminated against our people and it has caused great economic harm in many of our communities."

The new law is "not a perfect deal and it is not my preferred solution," he added.

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