The U.S. government and AT&T Inc, fighting against a lawsuit accusing the telephone operator of illegally allowing the government to monitor telephones and e-mails, won the right to argue for dismissal of the case before a U.S. Appeals Court on Tuesday.

In January, the Electronic Frontier Foundation (EFF), a privacy advocacy group, sued AT&T, saying it collaborated with a National Security Agency spying program it said involved eavesdropping on phone calls, reading e-mails and gathering call records of millions of Americans, without warrants.

In July U.S. District Court Judge Vaughn Walker rejected a request from AT&T, the head of U.S. intelligence and other officials to dismiss the EFF suit.

The U.S. 9th Circuit Court of Appeals on Tuesday agreed to hear an appeal by AT&T and the government of Judge Walker’s decision.

AT&T spokesman Walt Sharp said the company was pleased the court had chosen to look at the appeal.

Kurt Opsahl, staff attorney for the Electronic Frontier Foundation, said he was “not surprised” by the decision.

“I think eventually this case may very well appear before the Supreme Court,” Opsahl said.

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