New Zealand's Court of Appeal on Thursday upheld earlier court rulings that found the men were eligible to be handed over to the United States.
The German national, who is accused of industrial-scale online piracy, had asked the court to overturn two previous rulings that he and his three co-accused be sent to the U.S. to face charges. "We have now been to three courts each with a different legal analysis - one of which thought that there was no copyright infringement at all".
Kim Dotcom at his extradition appeal at the High Court in Auckland in 2016.
The charges are related to Mr Dotcom's now defunct fire-sharing website Megaupload, which allowed millions of people to download digital content.
A United States grand jury indicted the group on February 6, 2012, over the now-defunct file-sharing website Megaupload, which allegedly shared pirated films and other media.
If extradited to the USA, the internet entrepreneur would face charges of racketeering and copyright infringement over his now defunct file-sharing platform Megaupload.
The last option the defendants have, assuming that Justice Minister Andrew Little decides to pursue the matter further, is a review from the New Zealand Supreme Court.
In an FBI-ordered raid in 2012, police used the anti-terrorist Special Tactics Group in a helicopter assault on Dotcom's former Coatesville mansion. "I will appeal to the Supreme Court".
Dotcom was "extremely disappointed" by the court's stance, and, without mincing words, he dismissed it as being "in complete denial of the legislative history and intention of the Copyright Act".
"We are satisfied New Zealand law permits extradition for copyright infringement in the circumstances of this case", said the court's decision, by Justices Kós, French and Miller.
The US Federal Bureau of Investigation has led the case and claims Megaupload was a criminal conspiracy that earned the men $US175 million.