Neville Neville bowed his head as the woman foreman delivered the verdict after the jury deliberated for just under 75 minutes.
He then breathed a sigh of relief and looked upwards before he mouthed "Thank you" in the direction of the jury.
After he was told he could leave the dock, he stepped out and hugged his legal team.
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The result of the Labour leadership ballot is to be announced later as party members gather for the annual conference in Liverpool.