US Appeals Court Restores $656 Million Judgment Against Palestinian Authority for Terror Attacks

A US appeals court restores a $656 million verdict for American terror victims, allowing lawsuits against the Palestinian Authority to proceed after a decade.

By: AXL Media

Published: Apr 6, 2026, 10:12 AM EDT

Source: Information for this report was sourced from The Times of Israel

Reversal of a Decade-Old Appellate Shield

The 2nd US Circuit Court of Appeals has officially reinstated a landmark $656 million judgment against Palestinian leadership, reversing its own previous stance on the jurisdiction of American courts. This decision comes ten years after the same court dismissed a 2015 jury verdict, which had originally found the Palestine Liberation Organization and the Palestinian Authority liable for a series of terrorist attacks in Israel. The court’s latest ruling, dated March 30, 2026, signals a definitive shift in how US law treats foreign entities accused of supporting violence against American citizens abroad, ending a prolonged period of legal uncertainty for the plaintiffs.

Supreme Court Precedent and Legislative Evolution

The shift in the appellate court’s position is a direct consequence of a June 2025 Supreme Court ruling and subsequent legislative action by the US Congress. According to the judges, the reinstatement aligns with the 2019 law designed specifically to grant American victims the right to pursue litigation against the PLO and the Palestinian Authority in US federal courts. This legislative framework was intended to close loopholes that previously allowed foreign organizations to avoid liability for attacks not specifically targeted at the United States. The appellate panel noted that their conclusion is a direct reflection of the Supreme Court's interpretation of these updated statutes.

Victims and the Decades of Litigation

The legal battle has spanned over 22 years, involving families affected by devastating violence, such as the 2002 Jerusalem suicide bombing that injured lead plaintiff Mark Sokolow and his family. The broader group of plaintiffs represents victims of multiple attacks that resulted in 33 deaths and more than 450 injuries. Attorneys for the families, including Kent Yalowitz and Nitsana Darshan-Leitner, expressed significant relief that the judgment was restored without the necessity of a new trial. The families argued successfully that the late Yasser Arafat and the PLO provided financial support to attackers, establishing a foundation for liability under the 1992 Anti-Terrorism Act.