All Blacks security guard Adrian Gard has been found not guilty of making up claims he found a bugging device at the team's Sydney hotel a year ago.
Downing Centre Local Court Magistrate Jennifer Atkinson on Friday said there was not enough evidence in the circumstantial case to convict Gard of making a false representation resulting in a police investigation in August last year.
Atkinson did, however, find Gard guilty of a second charge of acting as a security consultant without the proper licence.
All Blacks security consultant Gard had faced a charge of making a false statement to police, but pleaded not guilty.
Gard, who has been acting as a security guard in Australia for the All Blacks for more than a decade, claimed to have found the listening device secreted in a chair in the team's meeting room at the InterContinental Hotel on August 15 last year.
The All Blacks waited for five days before calling in the police because they had hoped not to get the media involved.
However, this angered the Wallabies who who felt the announcement was ill-timed and caused an unnecessary distraction.
Although the All Blacks never accused Australia or the Wallabies of any wrongdoing, the incident soured relations between the team following speculation on social media.
New Zealand Rugby and All Blacks management have today welcomed the conclusion of the case.
NZR CEO Steve Tew said: "This has been a truly strange case but we are pleased it has now been concluded. We accept the finding of the court, and consider the matter closed. We hope people move on from this issue, and like us, turn our attention to the more important business of a Bledisloe Cup Test match."
An Australian Rugby Union spokesman declined to comment, saying: "We won't be releasing any comment, it has nothing to do with us."
New South Wales police said they would not be making any comments on the case. A spokeswoman said no one else was facing any other charges over the matter.
Earlier today, All Blacks captain Kieran Read, giving evidence on the phone from his room at the InterContinental Hotel in Double Bay, told the Downing Centre Local Court he believed security guard Adrian Gard was "honest and loyal".
Read said he and the New Zealand team respected "Gardy" for his professionalism and the great way he did his job without hurting the team's "brand".
Read told the court he had known Gard since 2009 and described him as a "pretty good man".
He said Gard had been part of the All Blacks group for quite a long time and he had always been completely honest.
"The team sees him as very professional," Read said.