AUSTIN (CBSDFW.COM/AP) – A federal appeals court has dismissed a class action in a lawsuit challenging Texas’ foster care system, but sent the case back a lower court to try again.

The lawsuit by New York-based advocacy group Children’s Rights claims the Texas foster care system is unconstitutional and forces thousands of children to live in poorly supervised institutions, frequently moves them from one place to another and separates them from siblings.

The lawsuit was filed 2011 on behalf of nine Texas children. A state district judge in Corpus Christi allowed the class action, but Friday’s ruling by the New Orleans-based appeals court said the case had not yet met legal standards to certify the class.

A Children’s Rights official said the group is confident it can meet the legal standard.

(Copyright 2012 by CBS Local. The Associated Press contributed to this report.  All Rights Reserved.)