PHILADELPHIA — Westinghouse Electric Co., which offered to settle an age discrimination lawsuit two years ago for $35 million, has won the case in federal appeals court.

The ruling Thursday, prompted by a recent U.S. Supreme Court decision, ended the court battle that began in 1983 when the federal Equal Employment Opportunity Commission challenged Westinghouse for forcing laid-off employees to retire before age 70 because severance pay was not available.

The settlement offer, which would have given about 4,000 retirees an average payment of $8,750, was rejected by government lawyers because they believed the workers would get more in court.