Morales took two attempts to weigh in bang on the 135lb limit
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Erik Morales failed to become the first Mexican to win titles in four weight classes on Saturday as he lost a bid for the WBC lightweight belt.
The former bantamweight, featherweight and super featherweight champion was outpointed 114-113 115-113 115-112 as David Diaz made a first title defence.
Morales, 30, put Diaz down in the first round of the fight in Chicago before being floored himself in the second.
And American Diaz upped his onslaught to ensure the unaminous decision.
Morales, who won his first world championship when he stopped Daniel Zaragoza for the WBC super bantamweight title in 1997, now looks to certain to retire.
On the undercard, another Mexican, Ulises Solis, retained his IBF light flyweight title with an eighth-round knockout of Rodel Mayol of the Philippines.
It was the fifth defence of the crown for the 25-year-old Solis since winning it from Will Grigsby in January, 2006.
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