According to the Los Angeles Times, the 9th Circuit Court of Appeals is rejecting an Islamic charity's claim that they had been illegally spied upon.
The report is just coming out, so there isn't too much information.
The article states that the Court voted 3-0 in their opinion.
The Court asserted that the case could not go forward because of the "state secret" privilege.
More information as becomes available.
Some background:
This case involves the U.S. arm of the Al-Haramain Islamic Foundation.
Their lawyer accidentally turned over to the Government a call log.
The charity's lawyers voluntarily turned over the document to FBI agents after it was given to them. But a lower court ruled that the lawyers couldn't use the actual document to support their lawsuit but could use their memories of its contents to go forward.
So the Court has ruled that the information they turned over contains state secrets. And they can't have access to it to defend themselves in court.
As Kagro X pointed out in the comments, some of these calls were between lawyers and their clients. Calls that are generally considered confidential.
update: link changed to reflect more substantive story.