02:53 PM EDT, 06/27/2024 (MT Newswires) -- (Adds details in second paragraph.)

Meta Platforms ( META ) faces a revived discrimination lawsuit after a US appeals court ruled Thursday that US citizens can bring claims under the 1866 Civil Rights Act, overturning a federal district judge's decision that Purushothaman Rajaram's lawsuit lacked standing.

In a 2-1 decision, the San Francisco-based 9th U.S. Circuit Court of Appeals ruled that the law prohibiting discrimination in contracts based on "alienage" also applies to bias against US citizens, according to the court ruling.

Rajaram, who unsuccessfully applied for multiple positions at Meta's Facebook, sued the company for allegedly discriminating against US citizens in favor of foreign workers on H-1B specialty occupation visas because they can be paid less.

Shares of Meta rose 0.6% in recent trading Thursday.

Price: 516.41, Change: +3.28, Percent Change: +0.64