The court ruled on Friday there was no objective data to prove that the prosecutor was biased.
The latest request to remove the prosecutor from the case was filed by the Labor Party's lawyer. Last November, an analogous request was made by the Labor Party's leader Viktor Uspaskich who stands charges in the case.
The court will not hear the case on Friday but will continue the prosecutor's request to restrict the party's operations and prevent its possible merger with the Order and Justice party.
The prosecutor said that such a move would render the Labor Party defunct, which would make it impossible to bring it to justice.
One of the defendants in the case, Uspaskich, was admitted to hospital earlier this week but was released on Thursday. Other defendants, Vytautas Gapšys and Marina Liutkevičienė, should give testimony in the next hearing.
The Labor Party is charged with failing to include more than 24 million litas (EUR 6.9m) in income and 23 million litas in spending into its books between 2004 and 2006.
Uspaskich, the Labor Party's leader, Deputy Speaker of the Seimas Vytautas Gapšys and MP Vitalija Vonžutaitė are currently standing trial for organizing fraudulent bookkeeping while holding top positions at the Labor Party's Vilnius bureau in 2004-2006. In addition to the three parliamentarians, charges in the case have been brought against the party as a legal entity and its former financial officer Marina Liutkevičienė.
The Labor Party's members strongly deny the accusations, saying the case is politically-motivated. The case reached court back in 2008.