For some reason they are asking the Judge to close the case and the are giving up the right to bring it again.
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Discontinued with prejudice means that the case is being discontinued and they will not be refiling the case ever. Unusual action but good for you.
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This is great news for you. It means that once the Court grants the credit card company's request, the case will be withdrawn and they can never go after you for the money owed.
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Were you actually sued by the collector? That was not clear from you question. If sothen my colleagues are correct, this is good news for you. If you do not think you have been sued, you might want to double check with the Court, just to protect yourself.