The city filed the lawsuit two years ago seeking more than $100 million for damages to homes.
The companies involved in the matter are NL Industries and Mautz Paint, which sold its business to Ohio-based Sherwin Williams.
Mautz Paint attorney Tony Dias says the case had no merit.
Mayor John Norquist says he doesn't want to appeal the decision but he'll confer with the city's attorney before making a final decision.
Norquist says even if the paint companies don't have a legal responsibility to help, they still have a moral responsibility.
Lead poisoning has been associated with many health problems, including learning disabilities. Lead paint was banned from interiors in 1978, but many homes still have it.
