Story perspectives

Palestinian Authority Seeks Stay on $656 Million Judgment Threatening Payroll

8/1/2026

Summary

Story summary

The Palestine Liberation Organization, saying the award became a nullity in 2018, and the Palestinian Authority have asked Supreme Court to stay a $656 million judgment stemming from a 2015 New York jury award.
The Palestinian Authority warns the $655.5 million equals one-third of its payroll, reducing salaries to 70 % and threatening West Bank hospitals and schools, risking regional security.
Plaintiffs’ lawyers declined comment as the Court weighs the stay pending appeal.

History

Historical Context

Following the 1998 U.S. embassy bombings in Kenya and Tanzania, U.S. courts allowed civil suits under the 1996 terrorism amendments; a 2004 New York jury ordered the Palestine Liberation Organization to pay $655.5 million to victims’ families. The 2008 amendment to the Foreign Sovereign Immunities Act retroactively upheld such awards, and the Palestinian Authority’s 2024 Supreme Court petition to stay the judgment reflects fiscal pressure.

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Story summary

The Palestine Liberation Organization, saying the award became a nullity in 2018, and the Palestinian Authority have asked Supreme Court to stay a $656 million judgment stemming from a 2015 New York jury award.
The Palestinian Authority warns the $655.5 million equals one-third of its payroll, reducing salaries to 70 % and threatening West Bank hospitals and schools, risking regional security.
Plaintiffs’ lawyers declined comment as the Court weighs the stay pending appeal.

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