The court also dismissed a similar suit from “Mob Wives" star Karen Gravano.
The actor was arrested in July and faces up to 3 years in jail if convicted.
He could face up to 40 years in prison if convicted of both charges.
TMZ alleges that police are trying to cover up the country singer's involvement.
The model claims Cutera used her photo in advertisements for acne laser treatment without permission.
Danica Dillion was asking for $500,000 in damages.
Jason "Jace" Alexander pleaded guilty to promoting a sexual performance by a child and possessing an obscene performance by a child.
The actor was briefly hospitalized in June after police arrested him on suspicion of driving under the influence.
The singer also revealed he doesn't consider himself to be an honest person.
The country star is seeking more than $1 million in damages over the story that his lawyers say is false.