Yes they lost on appeal. Here’s the article: http://laist.com/2012/07/25/scientology_ruling.php
The decision is here: http://www.ca9.uscourts.gov/datastore/opinions/2012/07/24/10-56266.pdf
However, this is a legal analysis on the case: http://blogs.findlaw.com/ninth_circuit/2012/07/church-of-scientology-wins-in-9th-cir-but-did-it-really-win.html
I think the Headley’s used the wrong legal issue to press their point. The 9th Circuit pretty much said their case would be more credible if they filed under another legal issue.
