VANCOUVER - A British Columbia woman has hit a dead end in her quest for compensation from the Canadian government, whom she accuses of falsely branding her a terrorist and an arms dealer to American authorities.

The United States Ninth Circuit Court of Appeal has dismissed an appeal from Perienne de Jaray, upholding a Washington state district court's ruling that says she can't sue Canada for malicious prosecution or abuse of process.

The lower court wrote in its decision earlier this year that American law grants immunity to foreign states.

De Jaray is a former co-owner and executive of Apex USA, once a multimillion-dollar subsidiary of electronics maker Apex Canada, which her father founded.

She alleges she suffered years of baseless investigation on both sides of the border after the Canadian government told the Federal Bureau of Investigation in 2009 that it had intercepted a shipment of illegal, weapons-grade electronics from Apex - a claim later revealed to be false.

The Canadian government ordered all criminal charges against de Jaray and her father stayed in 2011, and the charges were eventually dismissed.