Plaintiffs alleging the belated revelation that Barclays bank overstated its creditworthiness in submitting information on borrowing costs to LIBOR had their claim reinstated Friday.

The U.S. Court of Appeals for the Second Circuit said it had been premature for a district judge to dismiss claims brought by aggrieved stockholders who saw Barclays American Depository Shares drop 12 percent on the 2012 admission that the bank had submitted lending rates to LIBOR that were false from 2007 to 2009.