A federal appellate court has ordered a lower court to reconsider whether a pair of hedge funds violated securities laws while trying to win seats on the board of directors for the railroad company CSX Corp.

The decision in CSX Corp. v. The Children’s Investment Fund Management, 08-2899, which lifted an injunction barring the funds from future securities law violations, was handed down Monday by the U.S. Court of Appeals for the Second Circuit nearly three years after the panel heard oral arguments. The opinion was written by Jon O. Newman and joined by Judge Ralph K. Winter Jr., with Judge Guido Calabrese writing a separate concurrence.