A district court failed to apply the multistage analysis before determining whether a case should be dismissed on forum non conveniens grounds, the U.S. Court of Appeals for the Second Circuit ruled Friday.

The order issued by the panel, composed of Circuit Judges Richard Wesley, Denny Chin, and Richard Sullivan, vacated and reversed the 2018 litigation victory for Chinese e-commerce company Dangdang and its counsel at O’Melveny & Myers. That January, U.S. District Judge Katherine Polk Failla of the Southern District of New York ruled in favor of the Chinese company facing a class action brought by investors. The Second Circuit panel said Failla abused her discretion by failing to conduct the proper analysis in tossing the investors’ lawsuit.