The decision stems from a motion from a defendant who moved to dismiss his case on the grounds that Habba, Trump's former lawyer, was unlawfully appointed.
A judge found that acting U.S. Attorney Lindsey Halligan, who was prosecuting James Comey and Letitia James, was unlawfully appointed. Attorney General Pam Bondi said the Justice Department will appeal.
Criminal indictments against the former FBI director and New York attorney general were thrown out after the judge found the prosecutor was "unlawfully appointed."
The turn of events comes a day after federal prosecutors admitted in court that not all grand jury members saw the final version of the indictment against the former FBI director.