A libel lawsuit filed by a Philadelphia-based animal rights group against a lobbying firm for running an ad accusing the group of terrorism has been dismissed by a state appeals court.

In finding that the group failed to show the ad was created with malice, a unanimous panel of the Appellate Division, First Department, on Tuesday reversed a February order by Manhattan Supreme Court Justice Lucy Billings allowing the group, the Humane League of Philadelphia, to proceed with the suit.