Does North Carolina's so-called "Bathroom Bill" discriminate against transgendered persons? The federal government says 'yes' while the state says 'no.' Now, the courts will be asked to decide.

FOX's Eben Brown reports:

North Carolina's law disallowing transgendered people from using the public restroom of the gender by which they identify might be an attack against civil rights, says U.S. Attorney General Loretta Lynch:

(Lynch) "They created state-sponsored discrimination against transgendered individuals."

But North Carolina's government, lead by Republican governor Pat McCroy, claims no federal law includes transgendered as a protected lass and the feds are overstepping:

(McCrory) "Imposing regulations and impacting ones personal privacy."

Both sides want a federal judge's take

Eben Brown, FOX News.