The woman is being held on suspicion of public mischief in a case that caused an uproar in Israel.
The release of the Israelis is probably in response to the girl changing her version of the story, which harmed her accountability.
As for the investigation itself, the lawyer claimed it was "gentle, long and fair. I want to praise the investigative authorities who are trying to find the truth."
The Israeli youth is being held in Cyprus with 11 other teenagers for the alleged rape of a British tourist.