A judge dismissed a federal lawsuit by former President Donald Trump against New York Attorney General Letitia James, allowing a civil investigation into Trump's business practices to continue.

The lawsuit, filed last year by Trump and the Trump Organization claiming that James's investigation violated their rights, was dismissed, with Judge Brenda Sannes citing case law barring federal judges from interfering in state-level investigations, according to a court filing with the U.S. District Court for the Northern District of New York.

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"In a big victory, a federal court has dismissed Donald Trump's baseless lawsuit to stop my office's investigation into his and the Trump Organization's financial dealings," James wrote. "Frivolous lawsuits won't stop us from completing our lawful, legitimate investigation."

Trump's team has said it plans to appeal the judge's decision, according to Alina Habba, one of its attorneys.

“There is no question that we will be appealing this decision. If Ms. James’s egregious conduct and harassing investigation does not meet the bad faith exception to the Younger abstention doctrine, then I cannot imagine a scenario that would,” Habba said in a statement to the Washington Examiner.

The decision comes a day after an appeals court ruled that Trump and two of his adult children, Donald Trump Jr. and Ivanka Trump, are obligated to comply with subpoenas issued by James and testify under oath for the state's investigation.

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The lawsuit was filed last December after James issued a subpoena for the former president's testimony. He argued his constitutional rights had been violated in what he called a politically charged investigation.

Last week, Trump paid a $110,000 fine despite not having met all the conditions required to lift a contempt-of-court finding, according to James's office. The order, issued on April 25, fines him $10,000 a day until he complies with court orders to turn over the documents.