New York (CNN Business) A federal appeals court on Tuesday reversed a lower court's decision to dismiss a defamation lawsuit filed by Sarah Palin against The New York Times, giving the former Alaskan governor another chance to square off with the newspaper.

In its decision, the appeals court ruled that district court Judge Jed Rakoff, who dismissed the case in August 2017, had "erred in relying on acts outside the pleadings to dismiss the complaint."

The court said it further concluded that the amended complaint from Palin, who was also the Republican nominee for vice president in 2008, "plausibly states a claim for defamation and may proceed to full discovery."

As a result, the appeals court sent the case back to the district court for "further proceedings consistent with" its opinion.

In a statement, Danielle Rhoades Ha, a spokeswoman for The Times, said the newspaper was "disappointed in the decision" and intends to "defend the action vigorously."

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