Lin Kuo-ching from the DPP had alleged that Shih had stayed in a luxury motel in Taipei City while thousands of his supporters were staging a marathon sit-down protest in front of the presidential palace in 2006.

Shih was the leader of a so-called “Red Shirt” campaign to oust President Chen Shui-bian, whom they accused of being corrupt. Shih took legal action against Lin, but the Taipei District Court found Lin not guilty of the criminal charge.

The Taiwan High Court, returning a final verdict yesterday, upheld the district court ruling, saying Lin’s accusations were based on information provided by his “source,” Tsai Wen-chia, and that the ex-lawmaker was only challenging Shih to clarify the allegations.

Although Lin has been cleared of the criminal charge, he may have to pay Shih a large sum for damages in a related civil lawsuit.

The Taipei District Court last month ordered Lin and Tsai to pay Shih NT$1 million for damaging his reputation.

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