The couple released the statement on Wednesday, explaining:
"We will solely be focused on the future health of our family and will not be pursuing a lawsuit against Disney. We will forever struggle to comprehend why this happened to our sweet baby, Lane."
The family was on vacation at the Seven Seas Lagoon near the Grand Floridian Resort on June 16. The Nebraska toddler was playing in about a foot of water when the alligator attacked.
Lane's parents say that though the "pain gets worse" as each day passes, they appreciate the outpouring of support they have received from around the world — and have created the Lane Thomas Foundation to "keep his spirit alive."
"We know that we can never have Lane back, and therefore, we intend to keep his spirit alive through the Lane Thomas Foundation. It is our hope that through the foundation we will be able to share with others the unimaginable love Lane etched in our hearts. For now, we continue to ask for privacy as we focus on our family."
The Graves family were not specific about the purpose of the foundation, or if Disney was backing it — though if the family dropped the lawsuit, it's likely they received a hefty settlement from the multi-billion dollar company.
Our hearts go out to Lane's parents as they continue to grieve over this devastating loss.
According to reports out Sunday morning, Angelina Jolie's political ambitions with the United Nations may have caused a rift between her and Brad Pitt, at least based on a source "close to the couple."
TMZ is reporting that Jolie's dream had been to become a top official with the UN -- which makes sense, considering all the charity work and traveling to developing nations that she does -- but that didn't fly at home with Brad.