Detroit, Michigan district court judge Paul Borman dismissed the action filed by James Nichols, the brother of Oklahoma City bombing conspirator Terry Nichols.
James claimed Moore's documentary implied he was an accomplice in the tragic 1995 attack, which left 168 people dead, and slammed the movie maker for causing him distress.
The accuser also claimed Moore incorrectly stated he had been arrested in connection with the bombing, when he was only held as a material witness. His brother received two life sentences and Timothy McVeigh was executed in 2001 for planning the bombing.
However, judge Borman ruled the statements featured in the documentary, which looked at gun crime in America as well as the horrific Oklahoma incident, were "factual and substantially true".
Nichols had objected to Moore's statement that, "Terry Nichols was arrested and received a life sentence. Timothy McVeigh was executed. But the feds didn't have the goods on James, so the charges were dropped."
But Borman ruled the statement "was literally true and accurately reported the government's dismissal of the charges" against Nichols.
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