PASADENA, Calif. — A federal appeals court has overturned a 14-year prison sentence handed to attorney Michael Avenatti, who gained prominence while representing adult film actress Stormy Daniels in her legal battle against former President Donald Trump. Avenatti was later found guilty of defrauding clients in California.

On Wednesday, a three-judge panel from the 9th U.S. Circuit Court of Appeals stated that Avenatti’s original sentence was based on an incorrect assessment of the financial losses incurred and ordered that the case be returned to a judge for a new sentencing hearing, as documented in their decision.

The panel also considered whether the new sentence should run concurrently with the prison time Avenatti is already serving for other crimes, which include misappropriating book royalties from Daniels—who had been involved in a lawsuit to void a nondisclosure agreement regarding an affair with Trump—and for extorting Nike.

“Mr. Avenatti is encouraged by the ruling of the Ninth Circuit Court of Appeals today. He looks forward to the hearing ordered by the Court,” stated H. Dean Steward, one of Avenatti’s lawyers assisting him in the appeal process.

The U.S. Attorney’s office in Los Angeles, which led the prosecution, opted not to provide any comments on the appellate court’s ruling.

Having been suspended from practicing law in California, Avenatti has taken on the role of representing himself during the legal proceedings. He pleaded guilty in 2022 to four counts of wire fraud alongside a tax-related charge, choosing to do so without any plea agreement with federal prosecutors. Avenatti expressed his desire to take responsibility for his actions and to minimize the potential for further disgrace to his family.

According to federal authorities, Avenatti allegedly negotiated and received settlement payments intended for his clients, only to redirect those funds into accounts that he controlled, using the money for his extravagant lifestyle.