A US appellate court ruled Friday that the State Department should reconsider its decision to list an Iranian resistance group as a terrorist organization, dpa reported.
The court determined that the Iraq-based People's Mujahedeen Organization (PMO) was not given an adequate chance to challenge the blacklisting since it has renounced violence and disarmed.
The judge's ruling did not address how the State Department should use classified information in making the determination, but rather instructed Secretary of State Hillary Rodham Clinton to review the case.
Being on the list prevents the organization from operating in the United States or receiving money from Americans. The PMO said it renounced violence against the Iranian regime in 2001 and disarmed after Iraqi dictator Saddam Hussein's regime was toppled.
The original designation occurred under the Bush administration.