Not innocent enough despite eight years' jail on quashed conviction.
Barry George, who spent eight years in prison after being wrongly convicted of BBC presenter Jill Dando's murder, had his claim for compensation thrown out on Friday.
Judges ruled that his conviction, later overturned in a retrial, did not amount to a "miscarriage of justice".
Lawyers for the 52-year-old, who would gain up to £500,000 ($943,000) if his claim was successful, argued the Justice Secretary illegally withheld the payment after his conviction was quashed in 2007 by effectively suggesting that George was "not innocent enough" to be compensated.
But a panel of High Court judges rejected the claims of George and three other men whose convictions had been quashed. They were part of a test case to decide when a victim of a wrongful conviction can be declared innocent.