U.S. District Judge C. Darnell Jones on Friday rejected the Milton Hershey School's motion to move the case to Harrisburg.
The AIDS Law Project of Pennsylvania sued the school last year, saying its rejection of the boy - an honor roll student who controls the HIV with medication - violated the Americans with Disabilities Act.
School officials say the decision was appropriate to protect the more than 1,800 other students in pre-kindergarten through 12th grade.
The school is separate from The Hershey Co. but financed by the Milton Hershey School Trust, which holds the controlling interest in the company.
