Tolley was murdered in an "execution-style killing" at her home in Upper Hutt on December 9, 2016.
CCTV footage showed four men entering her home armed with weapons believed to be a machete and a shotgun.
A confrontation ensued and Tolley was cut on her leg, then fatally shot from a close range.
It took three years before charges were laid in relation to her death, with three men eventually charged. Two of the three were believed to be inside the house at the time of Tolley's death, the third a lookout.
However, today it was revealed those charges have been withdrawn, and a murder trial set to take place this month will no longer go ahead.
Aunt Lorraine Duffin (left) and mother Cathrine MacDonald outside the Wellington High Court after an earlier appearance of a man charged with the murder of Lois Tolley. Photo / Emme McKay
Justice Simon France said the case unravelled for the Crown over a three-month period late last year, but acknowledged further charges could be laid if enough evidence arose.
"The Crown accepts it has insufficient evidence to sustain a guilty verdict." Significant suppressions still shroud the case in mystery.
Some of the group initially sought a complete dismissal of the charges, but Justice France said because of the seriousness of the charges and the possibility of an ongoing investigation, withdrawal was suitable.
Tolley's family says they do not understand how this decision is in the best interest of all New Zealand and the community and feels the justice system has let them down.
The family is appealing to the public - and people they believe to be withholding information on their daughter's murder - to come forward.
"We just want justice for Lois."
In the statement they thank the Operation Archer police team, which is investigating the 2016 murder, praising the team's dedication to get justice for Lois.
"As this is still an open investigation, we are unable to make any further comment," said police.
