ALBANY – A $3.2 milion jury verdict favoring a teacher who claimed she was defamed by a school district after her live-in boyfriend was arrested for sexually abusing teens has been thrown out by an appellate court.

The unanimous Appellate Division, Third Department, panel ruled that the judge at Lyndsey Wilcox’s trial in Tioga County Supreme Court allowed lawyers to present improper testimony about the rumors that circulated in the small Newark Valley community following the arrest of Wilcox’s boyfriend and about her allegedly being snubbed by residents as a result.