The Jefferson County grand jury decided Thursday there wasn't enough evidence for charges of prostitution and unlawful transactions with a minor against Katina Powell and Andre McGee.
Powell wrote in a book published in 2015 that McGee hired her to provide dancers to perform sex acts for Cardinal recruits and players from 2010-2014.
The announcement by the Commonwealth's Attorney's Office comes as the school awaits discipline in early June by the NCAA after an investigation.
Louisville has imposed its own penalties, including a postseason ban in 2015-16 and reductions in scholarships and recruiting visits by coaches.