Immediately after the story aired, questions were raised about the accuracy of the reporting.
Rather, who narrated the disputed piece, became the target of fierce criticism from conservative partisans who believed the story was an attempt to influence the 2004 presidential race.
The episode forever tagged Mr. Rather with the phrase, “fake but accurate.”
Six months later, Rather stepped down from the anchor chair he had occupied for nearly a quarter of a century -- a departure he said was not voluntary.
Rather's suit alleged that management at CBS and its then-parent company, Viacom, shifted blame to him to pacify the White House and that on the day after Bush was re-elected, he was informed he would be removed as anchor of the CBS Evening News.
Now the appellate division of the state Supreme Court found "the complaint must be dismissed in its entirety and that a lower court erred in failing to do so."
The ruling was unanimous.