Washington (CNN) A federal appeals court on Friday revived an ethics lawsuit against President Donald Trump that argues his business interests are conflicts of interest and violate the US Constitution.

The lawsuit, the plaintiffs of which include a hotel operator and a group of restaurants, claimed Trump's "vast, complicated and secret" business arrangements violate a constitutional provision, the Emoluments Clause, which bars the president from accepting gifts from foreign governments without the permission of Congress.

The lawsuit had been dismissed in late 2017 by US District Court Judge George Daniels, who said in a decision that the plaintiffs did not have legal standing to bring the suit. The judge granted a motion by the Department of Justice to dismiss the case.

On Friday, however, the US Court of Appeals for the Second Circuit found that "the district court did not apply the law correctly in finding that it lacked jurisdiction to decide the case."

In its opinion, the appeals court said the plaintiffs' complaint "alleges that plaintiffs' establishments are harmed in their competition with Trump establishments because, despite being comparable in other relevant aspects, the President's establishments offer government patrons something that plaintiffs cannot: the opportunity, by enriching the President, to obtain favorable government treatment from the President and Executive branch."

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