A lawyer for the Chicago Tribune says the newspaper will file a lawsuit in state court against the University of Illinois over the school's 2009 admissions scandal.
A federal appellate panel ruled Thursday that the case didn't belong in federal court. Tribune spokeswoman Karen Flax called the decision a technical setback.
The Seventh Circuit Court of Appeals decision vacated a ruling by a federal court that the university can't withhold the identities of students involved in the scandal.
The Tribune sought the names as part of its investigation into university admission of under-qualified, politically connected students.
The university called the decision recognition of the need to protect student privacy rights.