Rather sued CBS in 2007 for an alleged breach of contract, claiming in the suit that he'd been fired from his position anchoring "CBS Evening News" because of a report probing former President George W. Bush's service in the Texas Air National Guard.
The Appellate Court in New York's five-judge panel ruled in a unanimous decision that the complaint "must be dismissed in its entirety," saying that because CBS continued to pay Rather his $6 million annual salary after the 2004 Bush broadcast that his contract was not breached.
Martin Gold, Rather's lawyer, said he was "extremely disappointed" by the ruling.
CBS reps declared in a statement that the lawsuit is now "effectively over."
Rather was dumped by CBS in June 2006 after 44 years working for the network. He now works for cable channel HDNet, where he produces a news program.