The 4th District Court of Appeal in Santa Ana called the petition an "unprecedented, meritless effort by a stranger" and directed an Orange County probate court to vacate its order for an investigation into the family's finances.
Paul Petersen, an advocate for children in the entertainment industry, argued that Suleman's children were vulnerable and that an independent guardian should be appointed to look after their financial interests.
The appeals court said the probate judge erred because Petersen failed to show that Suleman was engaging in financial misconduct.
Suleman gave birth to octuplets on Jan. 26, 2009. The medical curiosity of their delivery turned to public outrage when it was learned that the single, unemployed mother had been caring for her six other children with the help of food stamps and Social Security disability payments for three of the youngsters.
Suleman said previously that some of the disability money was spent on in vitro fertilizations, which was used for all 14 of her children.