Terry was killed by Suge Knight in a hit-and-run accident on the set of Straight Outta Compton last year.
In their suit, the Carter family accused Dre and Cube of negligence, claiming they hired gang members to work security on the set of the N.W.A. biopic.
According to TMZ, a judge ruled that their names be removed from the suit.
Suge Knight is still in jail awaiting trial on murder charges.