Staff Sgt. Frank Wuterich of Meriden, Conn., claimed Murtha damaged his reputation by saying he and his comrades killed women and children "in cold blood" in Haditha, Iraq, in November 2005.
Murtha argued he has immunity from the lawsuit because he was acting in his official role as a lawmaker when he made the comments to reporters.
A three-judge panel on U.S. Court of Appeals for the District of Columbia agreed that Murtha has immunity in a ruling Tuesday.
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