Nicollette Sheridan 'Desperate Housewives' Retrial Called Off

6/2/2012 5:43 PM PDT

Nicollette Sheridan -- 'Desperate Housewives' Retrial Called Off

Breaking News

Nicollette Sheridan's wrongful termination lawsuit against Touchstone over her dismissal from "Desperate Housewives" was dealt a critical blow yesterday when an appeals court issued a ruling scrapping a September retrial.

The ruling, according to The Hollywood Reporter, also overturns the trials judge's denial of Touchstone's motion for directed verdict -- meaning the appeals court believes Touchstone should have won the trial in the first place.

The appeals court went on to say, "It is further ordered that the retrial currently set for Sept. 10 is hereby stayed pending further order of the court."

Sheridan's lawsuit isn't completely dead ... but it is on its last legs.