A federal appeals court in Washington appears poised to rule against the U.S. State Department in a dispute over the continued designation of a fringe Iranian resistance group as a foreign terrorist organization.

The U.S. Court of Appeals for the D.C. Circuit has a number of options available to it, including ordering the government to remove the People’s Mojahedin Organization of Iran from the foreign terorist list or setting a deadline for the government to act on the petition from the group. The court could take a middle ground, requiring the government to provide reports on the status of the ongoing assessment.