Appeals Court Reinstates $656 Million Judgment Against Palestinian Authorities

The 2nd U.S. Circuit Court of Appeals has reinstated a $656 million judgment against the Palestine Liberation Organization (PLO) and the Palestinian Authority, following a U.S. Supreme Court ruling that favored American victims of attacks in Israel. This decision, dated March 30, 2026, reverses a previous ruling from a decade ago that had dismissed the case on the grounds that U.S. courts lacked jurisdiction over foreign entities for overseas attacks not directed at the United States.

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The reinstatement aligns with a Supreme Court ruling from June 2025, which upheld a 2019 law allowing victims of international terrorism to pursue lawsuits against foreign organizations. The court stated, “We conclude that the original judgment for the plaintiffs should be reinstated. That conclusion is consistent with the plain import of the Supreme Court’s decision.”

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The plaintiffs, who are American victims and their families, filed their lawsuits under the Anti-Terrorism Act of 1992, which was designed to enable U.S. courts to hear cases involving international terrorism. They allege that agents of the Palestinian authorities were either directly involved in the attacks or incited them. The reinstatement of the judgment marks a significant moment in a legal battle that has spanned over two decades.

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Attorney Kent Yalowitz, representing the plaintiffs, expressed relief at the court's decision, stating that the families have been waiting for justice for a long time. Nitsana Darshan-Leitner, another attorney for the plaintiffs, also conveyed satisfaction with the outcome after years of litigation.

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While the ruling has been welcomed by the plaintiffs, it has drawn criticism from various quarters. Opponents argue that the decision could set a precedent for further legal actions against foreign entities, potentially complicating international relations and diplomatic efforts. Concerns have been raised about the implications of allowing U.S. courts to adjudicate cases involving foreign organizations, particularly in the context of ongoing conflicts in the Middle East.

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The appeals court's decision has been met with mixed reactions. Supporters of the ruling emphasize the importance of holding foreign entities accountable for acts of terrorism against American citizens. Critics, however, caution against the potential ramifications for U.S. foreign policy and international law.

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Following the reinstatement of the judgment, the next steps involve potential appeals from the PLO and the Palestinian Authority. Legal experts anticipate that this case may lead to further discussions regarding the jurisdiction of U.S. courts over foreign entities involved in international terrorism.

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• “We conclude that the original judgment for the plaintiffs should be reinstated.” — 2nd U.S. Circuit Court of Appeals

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• “Our client families are very relieved that the court has reinstated the judgment without requiring a new trial.” — Kent Yalowitz, Attorney

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