Leeds City Council is one of a group of eight councils to have a legal claim against Barclays over bank loans they alleged were affected by the Libor rigging scandal thrown out.
The local authorities took out long-term loans with the bank between September 2006 and November 2008.
They had argued the loans were "tainted" by the bank's representations concerning Libor interest when they were offered.
But a High Court judge has concluded they would not be successful at a trial.
Leeds, Greater Manchester, Newcastle, North East Lincolnshire, Nottingham, Oldham, Sheffield and Newham councils all launched action to cancel the loans in 2018.
On Monday, Mrs Justice Cockerill struck out the claims, saying they had "no real prospect of success", following an application by Barclays.
Libor, the London Interbank Offered Rate, is the benchmark interest rate that tracks the cost of borrowing cash.
The judge said it had been "of fundamental importance to global financial markets" as it helps to assess the overall health of the banking sector and is widely used by financial institutions for various purposes, including setting rates for their products.
It was "common ground (and public knowledge) that Barclays did in fact engage in Libor manipulation, but that the precise nature and extent of the banks involvement in it is "very much in issue", the judge added.