A Mexican appeals court has reversed a ruling that jeans maker Levi Strauss & Co was guilty of misguidedly targeting an ex-contractor as part of a clampdown on counterfeiting.

The court threw out the $45 million ruling against Levi, stating that there was no direct connection between the raid of Comexma's plant and its subsequent closure.

Levi was ordered in March to pay Comexma $24.5m in direct damages and an additional $20.5m for damaging the company's reputation.

Mexican police raided Comexma's plant in 2001 after receiving information from a company attorney, which failed to get the relevant approvals, according to Levi.

The plant was then shut down in March the next year.

Comexma is permitted to call for a review of the appeals court ruling.