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For someone charged with a crime, a case dismissed with prejudice is the best news. It means the judge has made a final ruling, the case is dismissed, the prosecution can't reopen it, and the defendant (the person charged with the crime) is free to go.
A case that is ?dismissed with prejudice? is completely and permanently over. A case will be dismissed with prejudice if there is reason for the case not to be brought back to court; for example, if the judge deems the lawsuit frivolous or the the matter under consideration is resolved outside of court.
For example, if someone was subject to an illegal search or arrested without probable cause, that could be considered a violation of the defendant's constitutional rights. Another situation that can lead to dismissal with prejudice is if the person charged with the crime successfully completes a diversion program.
In the formal legal world, a court case that is dismissed with prejudice means that it is dismissed permanently. A case dismissed with prejudice is over and done with, once and for all, and can't be brought back to court. A case dismissed without prejudice means the opposite. It's not dismissed forever.