A British appeals court on Monday upheld the government's decision to ban Palestine Action as a terrorist organization, dealing a setback to the pro-Palestinian activist group after judges found the designation was lawful.

Chief Justice Sue Carr said the group went far beyond staging non-violent demonstrations to launch destructive attacks on defense companies, banks, and a military base.

The ruling overturned a February decision by three senior High Court judges who found that, despite the group promoting its political cause through some crimes, the scale of its activities did not warrant a ban.

Five judges on the appellate panel said the lower court understated the latitude then-Home Secretary Yvette Cooper had in banning the group and that her decision was "justified and proportionate” when balanced against free expression rights.

Palestine Action co-founder Huda Ammori said the group will fight the decision all the way to the Supreme Court and the European Court of Human Rights to overturn "one of the most extreme attacks on free speech and the right to protest in modern British history.”