The jury deliberated for more than 24 hours over five days before reaching the verdict of not guilty on the charge of criminally negligent homicide.
Prosecutors alleged that Penny's actions in holding Neely in a chokehold were reckless, asserting he knew it could lead to Neely's death.
Defense attorney argued that Neely posed a threat and that Penny acted to protect fellow subway passengers from a "violent and desperate" situation.
Judge Maxwell Wiley dismissed the more severe manslaughter charge, allowing the jury to focus on the lesser charge of criminally negligent homicide.
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