A federal judge has dismissed a libel lawsuit brought by an unsuccessful state Senate candidate who claimed an out-of-state political action committee published false claims about his political record.

U.S. District court Judge D. Brock Hornby conceded that the statements made by the Republican State Leadership Committee about Democrat James Schatz of Blue Hill were wrong and that they were used to mislead voters about his positions. But the judge said such attacks are protected under the Constitution’s First Amendment protection of freedom of speech.

“As a result, this is the classic case recognized by the Supreme Court in describing the sometimes negative consequences of First Amendment protection,” Hornby wrote. “Advocates may resort to ‘exaggeration, to vilification of men who have been, or are, prominent in church or state, and even to false statement,’ ” Hornby said, quoting earlier Supreme Court rulings.

“But that is the price that we pay for unfettered debate on public issues as protected by the First Amendment.

The case stems from the November election, when the Republican State Leadership Committee spent $400,000 targeting Democrats in five senate races. All five were defeated, which helped Republicans secure a Senate majority.

The fliers paid for by the Virginia group suggested Schatz, a state representative and Blue Hill selectman, voted to cancel his town’s fireworks display and then spent the money on a self-serving political campaign, his lawyer, Barry Mills said. He actually voted against canceling fireworks and it was town meeting voters that approved money to fight the school consolidation law.

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