By Andrew Goudsward and Sarah N. Lynch

WASHINGTON (Reuters) -A U.S. judge on Thursday sided with two New Jersey criminal defendants who sought to block a former personal lawyer to President Donald Trump, Alina Habba, from prosecuting them based on a claim she was unlawfully appointed as the state’s top federal prosecutor.

The ruling is a setback for the Justice Department under Trump, which maneuvered to keep Habba in her post and circumvent a judicial decision not to extend her 120-day interim tenure.

“Faced with the question of whether Ms. Habba is lawfully performing the functions and duties of the office of the United States Attorney for the District of New Jersey, I conclude that she is not,” wrote U.S. District Judge Matthew Brann.

The case was brought by two defendants in an ill

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