The ruling by the the US Circuit Court of Appeals for the Ninth Circuit followed an earlier ruling by a lower court that rejected Daniels’ defamation suit against Trump after he refuted her claims that they had sex in 2006.
The lengthy legal battle has set a chain reaction of appeals, with attorneys for both parties being convicted of felonies.
Last month, US celebrity lawyer Michael Avenatti was found guilty of stealing $300,000 from Daniels, who was due the money for writing a book about her alleged tryst with Trump.