If a case is dismissed, it is usually for lack of evidence.
If a case is dismissed “with prejudice” it means that the case was so bad you could go after the accusing party for damages the allegation caused (usually legal expenses)
I am not a lawyer, I don’t even play one on TV... but I think that’s correct.
Dismissed with prejudice means that the case is dismissed permanently. Dismissed without prejudice means that the plaintiff (government, in this case) can file and bring the case again.