A Boston arbitrator's decision was announced Sunday in a statement on Westford-based Puma North America Inc.'s Web site.
Carter signed an endorsement deal with Puma in 1998 shortly after being drafted by the Raptors, but announced late last year that he had terminated the deal.
The arbitrator also issued an injunction ordering Carter not to endorse or wear the apparel or footwear of Puma's competitors for three years, and ordered Carter to pay Puma's lawyers' fees and costs.
The arbitrator also dismissed Carter's claims against Puma.
Jochen Zeitz, chief executive and chairman of the German company, said in the statement "the company is extremely pleased with the outcome and feels completely vindicated."
Puma's Los Angeles lawyers, Norman Oberstein and Howard Horwitz, said there will be more discussions with Carter and his representatives.
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