Oakley's suit branches from a February 2017 incident, in which he was forced out of MSG during a Knicks game and subsequently arrested after a scuffle with security guards. Dolan and MSG were sued for defamation, battery, false imprisonment and violation of the Americans with Disabilities Act (ADA), among other related charges, that September.
Oakley was also banned from MSG for one year following the incident.
"We thank the court for its ruling," the Knicks said in a statement. "This was an incident that no one was happy about. Maybe now there can be peace between us."
The two claims in Oakley's argument included concerns of how he was treated by MSG employees along with public remarks made by Dolan and the Knicks' public relations staff.
Judge Richard Sullivan dismissed the case on Wednesday, ruling that Oakley "failed to allege a plausible legal claim that can meet federal pleading standards.”
“From its inception, this case has had the feel of a public relations campaign, with the parties seemingly more interested in the court of public opinion than the merits of their legal arguments," Sullivan wrote. "That is perhaps understandable, given the personal and public nature of the dispute."
The judge added that "basketball fans in general, and Knicks fans in particular, are free to form their own opinions about who was in the right and whether Oakley’s ejection was motivated by something more than the whims of the teams owner," but the evidence did not support his claims.
Oakley spent 10 seasons with the Knicks from 1988-98, averaging 10.4 points, 10.0 rebounds and 2.3 assists on 49.3% shooting. He also made the NBA All-Star team during the 1993-94 season.
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