Federal Judge Loretta Preska says the term "newsworthy" - defined in its most liberal and far reaching terms - can be applied to the 2006 hit movie.
The lawsuit had sought unspecified damages for Jeffrey Lemerond, a Dartmouth College graduate and financial analyst.
In the movie, Lemerond is shown running and yelling "Go away!" as Cohen's character, a phony journalist from Kazakhstan, chases him in an attempt to hug strangers.
The judge concedes that the movie employs a brand of humor that appeals to the most childish and vulgar in its viewers. But she says it also attempts an ironic commentary.
By Larry Neumeister