The trial had threatened to reshape the makeup of the government. But in the end, Lieberman was handed a resounding victory that instantly raises his clout in a bitterly divided coalition.
The verdict was delivered inside a closed courtroom, and minutes later, a jubilant Lieberman appeared outside.
"This chapter is behind me. And I am focusing on the challenges ahead, and there are plenty of challenges," he said, claiming he had been persecuted by overzealous prosecutors for 17 years.
Lieberman was charged with fraud and breach of trust for allegedly trying to advance the career of a former diplomat who relayed information to him about a separate criminal investigation into Lieberman's business dealings.
Prosecutors said they respected the court's decision and would study it before deciding whether to appeal.
Lieberman was forced to step down as foreign minister before parliamentary elections early this year to face the charges.
Lieberman, who was born in the former Soviet republic of Moldova, is one of the most polarizing figures in Israeli politics. With a tough-talking message that has questioned the loyalty of Israel's Arab minority, criticized the Palestinians and confronted Israel's foreign critics, he has at times alienated Israel's allies while becoming an influential voice at home.
