Nine plaintiffs from the indigenous Aymara community had argued in a US civil lawsuit that Sánchez de Lozada and his defense minister José Carlos Sánchez Berzain directed a violent military campaign that resulted in the deaths of eight of their relatives.

Overall, some 50 people were killed during the campaign.

But Federal Judge James Cohn, who presided over the court in Fort Lauderdale, Florida, ruled they lacked sufficient evidence, contradicting the verdict of a jury which held Sánchez de Lozada and Saáchez Berzain “responsible” for the deaths.

“Judgment is hereby entered in favour of Defendants Gonzalo Daniel Sánchez de Lozada Sánchez Bustamante and José Carlos Sánchez Berzain and against Plaintiffs,” Cohn wrote, soon after he issued an order stating the evidence presented to the jury was “legally insufficient” for it to have given its verdict.

In April, following a three-week trial, Sánchez de Lozada and Sánchez Berzain were ordered to pay the plaintiffs US$10 million (RM40 million) in damages.

But the pair’s lawyers submitted a motion asking the judge to dismiss the jury’s decision on a technical argument over insufficient evidence, which he accepted.

“The judge’s decision in favor of the defense demonstrates that there was absolutely no evidence that indicates the existence of a plan or order to use lethal force against civilians,” Sánchez de Lozada said in a letter.

Plaintiffs’ attorney Judith Chomsky said they would appeal, adding the judge’s ruling in contradiction with the jury was “unusual.”

“We think that in reaching that decision, (the judge) ignored parts of the record on which the jury could rely,” she said.

“We are disappointed, but we feel strongly that our case has merit and the jury made the right decision.”

Known as the “October massacre,” the deaths came after La Paz was cut off by massive protests led by Evo Morales, now the country’s president.

Armed government troops were deployed on October 11, 2003 to open a route through blockaded roads for diesel and gasoline shipments into the Bolivian capital. Witnesses say they opened fire on civilians.

The deaths and ensuing crisis forced Sánchez de Lozada’s resignation on October 17, and he fled the country the same day for the United States.

Sánchez de Lozada and Sánchez Berzain went on trial in the US under a law that permits civil suits in US courts for extrajudicial killings.