Google spooked investors so badly that its stock hit a six-month low, after it revealed its AI search summaries were affecting ad revenue.
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Erin Patterson argued her trial was unfair due to seven grounds but three appeal judges dismissed them all.
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The firm said roughly $3bn in assets have been frozen and that it will 'cover all losses'.
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In her first interview since the incident, Joanna Wietrzyk told the BBC she takes responsibility for it but did not deserve such a severe backlash.
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Recordings between a control centre and the train drivers appear to show one train was given clearance to move even though another train had stalled on the track.
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