Prosecutors had argued that Mr Penny acted recklessly by restraining Neely for several minutes after he lost consciousness.
Lawyers for Mr Penny said he was trying to protect other subway riders when he stepped in to subdue Neely, and that other medical factors may have caused his death.
Mr Neely’s death sparked protests across the city and reignited debates over public transportation safety and how the city cares for its residents who struggle with mental health issues and homelessness.
The verdict, announced on Monday, was met with loud applause in the Manhattan courtroom. Mr Penny appeared to smile while his attorneys hugged.
Mr Neely’s father was removed from the courtroom for yelling.
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