TERRE HAUTE, Ind.  – A lawsuit against the city of Terre Haute has been thrown out of court.

A federal judge has granted the motion to dismiss the Overseas Lease Group lawsuit that accused the city of a pay-to-play scheme, in which the mayor received benefits from groups with city contracts.

The alleged fraud stems from the failed Powerdyne sludge-to-diesel contract.

Overseas Lease Group sued Plocher Construction Company, the City, and related groups were all named in the suit.

The judge dismissed the case with prejudice, so the company cannot file a new lawsuit in this matter.

Online records show the company has filed a notice of appeal.

The judge said Overseas Lease Group’s arguments weren’t strong enough. He also said New Jersey wasn’t the proper place for the lawsuit and he said that the case shouldn’t have been filed as a consumer fraud lawsuit since the company and its owner are not consumers in this case.