A California appeals court has overturned a Lucasfilm pregnancy case verdict, saying jurors should have been told the entertainment company was entitled to withdraw its job offer.

A Marin County jury had awarded $114,000 and a judge awarded $1.2 million in lawyer fees to Julie Gilman Veronese, whose discrimination lawsuit said filmmaker George Lucas' firm wrongly withdrew a job offer after learning she was pregnant.

Lucasfilm denies the allegation.

The San Francisco Chronicle says the 1st District Court of Appeal on Monday overturned the jury verdict.

The appellate court says the trial judge should have told jurors that Lucasfilm was entitled to use its "business judgment" in revoking its job offer.