A Manhattan judge dismissed the suit in a ruling filed Thursday.
A lawyer for the neighbors, Daniel Alterman, said they were reviewing the judge's decision and would consider next steps. City lawyers had no immediate comment.
The $40 million plan envisions barriers, guard booths and vehicle-screening areas.
The city says the system is necessary to protect a site twice attacked by terrorists. Officials say pedestrians and cyclists will be able to move about.
Residents say their neighborhood would become a gated community plagued by traffic jams. They said the plan didn't undergo proper environmental review.
The judge said the review was proper.
http://accesswdun.com/article/2014/2/270854