A Western New York club featuring adult entertainment lost its bid Thursday to invalidate a government regulation that prevented pandemic relief funds from benefiting business that offer live performances of a “sexually prurient nature.”

A three-judge panel of the U.S Court of Appeals for the Second Circuit upheld a district court’s ruling that rejected Pharaohs GC Inc. request for an order granting it access to more than $345,000 in Paycheck Protection Program funds to pay its 76 employees and other expenses.

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