A federal judge tossed the $1 million lawsuit yesterday, about a month before it was set to go to trial.
Knight was suing West for damages for the August '05 shooting at Miami Beach's Shore Club, claiming the club and West didn't provide enough security.
The party, which was thrown before the MTV Video Music Awards, was also attended by A-listers Jessica Alba, Eddie Murphy, The Black Eyed Peas and Paris Hilton.
The shooting was never solved.
The judge Thursday concluded there was no evidence that showed a shooting at the party was foreseeable.
West's attorney said the suit was ill-conceived from the beginning and was glad it was tossed.
Knight's attorney, Mark Brumer, said his client was disappointed in the judge's decision and that they plan on appealing.