Circuit Judge Tom King threw out the lawsuit, which sought to void the State Finance Department's contract with Paragon Source.
The judge ruled the Legislative Oversight Committee and its chairman, Representative Alvin Holmes (D-Montgomery), did not show they had been personally harmed by the contract and that their complaints raised "non-justiciable political questions."
He also said they didn't have standing to file suit.
"We said from the beginning this lawsuit was frivolous and a waste of taxpayer money," Governor Riley said. "Today, the judge confirmed just that. It's over. Now it's time for the democrats to stop playing politics and quit wasting everyone's time and money."
WSFA 12 News spoke with Rep. Holmes by telephone Wednesday evening. Holmes says he's planning a news conference for Thursday afternoon where he'll announce his intentions to appeal the ruling.