Barry George, who was wrongly jailed for murdering Jill Dando, has lost his High Court bid for compensation.
Two judges rejected his claim that the Justice Secretary unfairly and unlawfully decided he was "not innocent enough to be compensated".
Lord Justice Beatson and Mr Justice Irwin ruled that the Secretary of State was "entirely justified in the conclusion he reached."
Ian Lawless, who spent eight years behind bars for murder before being freed by the Court of Appeal in 2009, won a similar legal challenge.
Mr Lawless was jailed for life in 2002 after confessing to the murder of retired sea captain Alf Wilkins on the Yarborough estate in Grimsby, Lincolnshire.
His conviction was later ruled unsafe after fresh medical evidence revealed he had a "pathological need for attention".
The judges ruled that in his case the decision to refuse compensation was legally flawed and must be reconsidered in the light of their judgement.
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