Three former Duke University lacrosse players falsely accused of rape can pursue their lawsuit against former prosecutor Mike Nifong after a judge rejected his appeal to keep the case in bankruptcy court.

Nifong had filed for bankruptcy in January, seeking protection from civil lawsuits filed against him in the fallout of the case. But a bankruptcy judge decided in May to allow the civil suits to go forward. Nifong appealed that decision.

U.S. District Judge James Beaty said in his ruling Thursday that the bankruptcy court may hear the case again after the civil suit has been decided.

Nifong won indictments against Dave Evans, Collin Finnerty and Reade Seligmann in 2006 after a woman claimed she was raped at a team party. But state prosecutors later declared them innocent and victims of a "tragic rush to accuse," and Nifong was disbarred and spent a night in jail for his role.

The players sued Nifong, police and the City of Durham last year, claiming injury and emotional distress caused by the prosecution. They accuse the defendants of conducting "one of the most chilling episodes of premeditated police, prosecutorial and scientific misconduct in modern American history."