A federal appeals court has thrown out a $1.21 million penalty against 44 ABC television stations for showing a woman’s nude buttocks.

Walt Disney (NYSE:DIS), which owns ABC, traded 3% higher Tuesday. 

The 2nd U.S. Circuit Court of Appeals dismissed the two-year old case, and the $27,500 fine for each of the 44 channels.

The investigation sought to determine whether the station violated broadcast indecency standards by showing the naked buttocks on an episode of “NYPD Blue.” In the controversial episode, the female character was shown disrobing in preparation for a shower.

The decision arose from a ruling last year that the Federal Communication Commission’s indecency policy was unconstitutionally vague, according to a report by Reuters.

The regulator had tightened its indecency policy in 2004 after Janet Jackson’s shirt was accidentally ripped off, showing her bare breast during a half-time show at the Super Bowl.