The issue related to Sandusky not testifying was not properly preserved for appeals court review, Panella wrote.
The appeals court also turned down another jury instruction claim, related to weighing a defendant's good character against the allegations.
A spokesman for the attorney general's office said the decision affirmed prosecutors' position about the strength and weight of the evidence against Sandusky.
Sandusky, 69, is serving a 30- to 60-year prison sentence at a state prison in southwestern Pennsylvania. If he does not get the convictions overturned, he is likely to die in prison.
Court opinion: http://bit.ly/16YU5Lx