May 15 (Reuters) - Republican Texas Attorney General Ken

Paxton may continue to pursue a case in state court accusing

Yelp of posting misleading notices on its online review

site about anti-abortion crisis pregnancy centers, a federal

appeals court ruled on Thursday.

A panel of the San Francisco-based 9th U.S. Circuit Court of

Appeals composed of three judges appointed by U.S. President

Donald Trump during his first term cited a legal principle that

federal courts should not intervene in state court disputes.

Yelp called the ruling disappointing. While a Texas judge

has dismissed Paxton's case, Yelp noted he is appealing that

decision, meaning the case remains "a troubling attempt by a

government official to punish speech with which he disagrees."

The San Francisco-based company had argued that its lawsuit

was covered by an exception to the usual rule against blocking

state court cases because Paxton had brought his lawsuit in bad

faith in order to retaliate against it over its views about

abortion.

But the panel rejected those arguments and said abstention

was warranted under the U.S. Supreme Court's 1971 ruling in

Younger v. Harris, which limits federal courts' ability to

interfere with state court proceedings.

U.S. Circuit Judge Daniel Bress, writing for the panel, said

a core premise of Younger was that a defendant could raise

defenses in state court and Yelp had not sufficiently

established that Paxton's case was without merit on its face.

Bress said Yelp likewise failed to establish that Paxton

pursued the case out of a desire to retaliate against the

company's support of abortion rights, which the attorney general

has fought hard against for years.

"Although Yelp takes issue with Attorney General Paxton's

efforts to regulate abortion and abortion-related matters, state

Attorneys General and other state officials are entitled to have

enforcement priorities and policy positions," Bress said.

Paxton's office did not respond to a request for comment.

Crisis pregnancy centers offer pregnant women counseling but

usually do not clearly advertise their anti-abortion stance.

In August 2022, Yelp began posting a notice on crisis

pregnancy centers' pages stating: "This is a Crisis Pregnancy

Center. Crisis Pregnancy Centers typically provide limited

medical services and may not have licensed medical professionals

onsite."

Yelp began posting those notices after the 6-3 conservative

majority U.S. Supreme Court in June 2022 overturned its landmark

1973 ruling Roe v. Wade that had guaranteed abortion rights

nationwide.

Following the Supreme Court's ruling, Yelp CEO Jeremy

Stoppelman issued a public statement that the ruling made clear

it was up to Congress to codify Roe and for business leaders to

step up to ensure women "have access to the care they need."

Months after it began posting the notices, Yelp sued Paxton

in Oakland federal court in September 2023 after learning that

the Republican planned to sue the company, which he did the next

day in Texas.

Paxton alleged that the notices Yelp posted on the review

pages for crisis pregnancy centers violated a Texas law against

unfair business practices and sought unspecified money damages.

A federal judge dismissed Yelp's lawsuit last year, citing

Younger. Not long after, a Texas trial court judge dismissed

Paxton's own civil enforcement action against Yelp on

jurisdictional grounds. Paxton is appealing.

Yelp has since changed the notices to state that crisis

pregnancy centers "do not offer abortions or referrals to

abortion providers." Paxton has called the new language

accurate.

The case is Yelp v. Paxton, 9th U.S. Circuit Court of

Appeals, No. 24-581.

For Yelp: James Sigel of Davis Wright Tremaine

For Paxton: Lanora Pettit of the Office of the Texas

Attorney General

Read more:

Yelp urges appeals court to end Texas lawsuit over crisis

pregnancy center reviews

US judge won't shield Yelp from Texas lawsuit over crisis

pregnancy center notices