Kerry Lathan had been in custody since being shot March 31 along with the rapper. KABC-TV reports Lathan walked out of LA's Men's Central Jail on Saturday.
The state department of corrections arrested Lathan for associating with a known gang member - Hussle.
But supporters assert Hussle was a former gang member who'd transformed himself into a pillar of the community. Besides, Lathan's lawyer says, her client just happened to be in the area when Hussle was gunned down.
Corrections officials announced last week that they'd drop the new allegations.
Lathan served 25 years for a 1994 killing and was released seven months ago.
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