Mr Eastwood accompanied the families to Bishop’s Street courthouse in August of last year.
Said the Foyle MP: “The people of Derry have been standing with the Bloody Sunday families for over 50 years and nothing will ever change that.
“The PPS decision today is the right one. Families who walked to court together and were joined by their representatives should not have been put through this ordeal on top of 50 years of injustice. I am glad that common sense has at last prevailed.
“This entire process has added more hurt to families who have endured decades of pain. The complaint was completely vexatious and those responsible should be ashamed.
“This episode cannot be allowed to distract from what is truly important – accountability for what happened in Derry on that day.
“The SDLP will continue to stand by the families as they continue their fight and will be by their side until the very end.”