Rabat, Morocco  - A Moroccan appeals court Thursday let stand a ruling that would require the nation's largest newspaper and its publisher to pay record amounts of damages in a defamation case.

The ruling requires the al-Massae newspaper and its chief editor, Rashid Ninny, to pay damages of up to 6 million dirham (more than 700,000 dollars) to a group of four district attorneys. It is the largest damages ruling in Morocco's media history.

At issue is a report that appeared in November 2007 about a gay festival in Ksar el-Kebir, in northern Morocco. The report alleged that a local state's attorney, who remained unnamed in the article, was in attendance.

The four local state's attorneys filed charges of defamation. Morocco's media unleashed a wave of protest when they won their initial ruling in March. Reporters Without Borders has questioned whether the newspaper, which was only founded two years ago, could survive the payment.

Al-Massae distributes 100,000 copies daily. (dpa)