The lawsuit was against the limo company, the limo driver, the limo manufacturer, the driver of the other vehicle, and the Town of Southold.
Supreme Court Justice Fernando Camacho ruled Wednesday that an indictment charging driver Carlos Pino was flawed because of improper grand jury testimony.
Limos and party buses were making U-turns at the very same intersection in Cutchogue where four young women lost their lives almost a year ago.
Eight young women were returning from a wine tasting in July of 2015. Four were killed, while the other four were severely injured in the crash.
Federal officials have agreed to investigate some limousine accidents, something it has rarely done, after questions were raised about the safety of some of the vehicles that are modified into so-called "stretch" limousines.
A full-size white stretch limo and two other cars are being used in the re-creation.