Diandra Douglas had said she was owed a cut from “Wall Street: Money Never Sleeps” because she was married to Douglas when he filmed his Oscar-winning performance as corporate raider Gordon Gekko in the 1987 original.
New York Supreme Court Justice Matthew F. Cooper wrote in his Nov. 9 decision the Empire State was not the “proper forum” to hear the case, Bloomberg News reported.
Instead, California “has greater familiarity than this court with both the law of community property and the facts of the underlying divorce,” he wrote, according to Bloomberg.
Diandra or her lawyers have not said whether they plan to take the case to California.
Douglas completed eight weeks of radiation and chemotherapy last month for throat cancer.
"He's feeling better everyday," his lawyer told E!