The 7th U.S. Circuit of Appeals in Chicago on Wednesday overturned a federal judge's decision to uphold the law, saying the ban was too broad.
U.S. District Judge Tanya Walton Pratt ruled in June that the state has a strong interest in protecting children and found that social networking had created a "virtual playground for sexual predators."
The American Civil Liberties Union of Indiana filed the class-action suit on behalf of sex offenders including a man who served three years for child exploitation. They were all restricted by the ban even though they are no longer on probation.