The New York State Supreme Court Appellate Division panel issued a judgment dismissing the complaint “in its entirety.”

This overturned a lower court's decision to allow Rather's US$70 million lawsuit.

CBS applauded the decision, saying it was “pleased by the appellate court's unanimous ruling today dismissing all of Dan Rather's claims.

CBS's position on each claim was upheld, as we have said they would be for the past two years.”

Rather's 2007 lawsuit alleged he'd lost his job as CBS Evening News anchor as a result of the 2004 report on Bush's military record.

The respected newsman, one of the most famous names in U.S. television, said CBS was acting to placate the White House.

The report had claimed that Bush was given special treatment during the Vietnam War years when he served in the Texas Air National Guard and was not sent overseas.

The authenticity of documents supporting the report later came under question.