Today's judgment comes in opposition to a jury's decision in 2007 that found Mr Trad was defamed by broadcaster Jason Morrison, who implied that he was a disgraceful, dangerous individual who incited people to commit violent acts.
The case stems from comments made by Morrison about Mr Trad on talkback radio in December 2005, shortly after the Cronulla riots.
The legal team for Harbour Radio, the owners of 2GB, argued that the information claimed to be defamatory was in fact true.
After hearing evidence about Mr Trad's reputation and the effect of the broadcast, Justice Peter McClellan ruled today that Mr Trad's claim should be dismissed.
‘‘There is little doubt that many of the plaintiff's remarks are offensive to Jewish persons and homosexuals," Justice McClellan said in his judgment.
Neither Mr Trad nor Morrison were at Sydney's Supreme Court to hear the judgment.
‘‘Many of his remarks are distasteful and appear to condone violence," the judgment continued.
‘‘I'm satisfied that the plaintiff does hold views which can properly be described as racist.
‘‘I'm also satisfied that he encourages others to hold those views. In particular he holds views derogatory of Jewish people.
‘‘The views which he holds would not be acceptable to most right-thinking Australians," Justice McClelland's judgment said.
Outside court, a representative of Mr Trad said he planned to appeal.
The parties are due to meet again next Thursday to discuss costs in the matter.
Source: Sydney Morning Herald