Story highlights Incident took place in Baghdad's Nusoor Square in 2007

The shooting stoked anger toward security contractors in Iraq

(CNN) A federal appeals court overturned the first-degree murder conviction of a security contractor involved in the 2007 shooting in Baghdad's Nusoor Square at the height of the Iraq War -- a deadly encounter that left 17 people dead.

Nicholas Slatten of Sparta, Tennessee, was a sniper working for the private Blackwater Worldwide security company. Originally sentenced to life in prison, he could be tried again after the appeals court decision.

Slatten was found guilty in Washington of first-degree murder in the slaying of the driver of a white Kia sedan in the Baghdad traffic circle. Prosecutors said Slatten kicked off the incident when he opened fire, but the company said the convoy came under attack.

Three other former Blackwater agents -- convicted on manslaughter charges stemming and each receiving 30 years -- will be resentenced for their roles in the deaths.

'Abused its discretion'

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