The European Court of Justice has ruled that the assets of a foundation suspected of collaborating with terrorists cannot be frozen until the organization has received a chance to clear its name, reports the Financial Times.

The Al Barakaat International Foundation, which was established in Sweden by the Saudi businessman Yassin Abdullah Kadi, had its funds frozen by the European Union because the foundation’s name and because Mr. Kadi’s name appeared on a United Nations list of those with suspected ties to Osama bin Laden, Al-Qaeda, or the Taliban.

European Court judges said that the rights of the foundation and of Mr. Kadi had not been given due respect and that the European Union had not put forth evidence that justified the inclusion of names on the list.

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