Court Reinstates $656 Million Award in Palestinian Terror Case

Victims of PLO attacks awarded $655.5 million in damages after appeals court reversal

Mar. 30, 2026 at 7:03pm

A serene, cinematic painting of an empty courtroom with a lone gavel resting on the judge's bench, bathed in warm, diagonal sunlight and deep shadows, conceptually representing the judicial process behind the reinstatement of a terror attack compensation award.The reinstatement of a multimillion-dollar judgment against the PLO underscores the long and complex legal battles faced by victims of Palestinian terror attacks.NYC Today

A New York federal district court's $655.5 million judgment for victims of the Palestine Liberation Organization's terror attacks has been reinstated by the US Court of Appeals for the Second Circuit, following a Supreme Court ruling that affirmed the lower court's jurisdiction over the case.

Why it matters

This case represents a significant legal victory for victims of Palestinian terror attacks, who have been seeking justice and compensation for years. The reinstatement of the multimillion-dollar award highlights the ongoing tensions between Israel and Palestine, and the complex legal battles that have unfolded in US courts.

The details

In 2015, a New York federal district court awarded $655.5 million in damages to victims of PLO terror attacks. However, in 2016, the Second Circuit Court of Appeals said the lower court lacked jurisdiction over the Palestinian Authority and the PLO, and issued a mandate to dismiss the suit. But the plaintiffs' motion to recall the mandate and affirm the original judgment has now been granted by the Second Circuit, following a 2025 Supreme Court ruling in Fuld v. Palestine Liberation Org. that affirmed the lower court's jurisdiction.

  • In 2015, a New York federal district court awarded $655.5 million in damages to victims of PLO terror attacks.
  • In 2016, the Second Circuit Court of Appeals said the lower court lacked jurisdiction over the Palestinian Authority and the PLO, and issued a mandate to dismiss the suit.
  • In 2025, the US Supreme Court ruled in Fuld v. Palestine Liberation Org. that affirmed the lower court's jurisdiction.
  • On March 30, 2026, the Second Circuit granted the plaintiffs' motion to recall the mandate and affirm the original 2015 judgment.

The players

Palestine Liberation Organization (PLO)

A political and paramilitary organization founded in 1964, which has been designated as a terrorist organization by several countries and has been involved in numerous attacks against Israeli and Jewish targets.

US Court of Appeals for the Second Circuit

A federal appellate court with jurisdiction over the states of New York, Connecticut, and Vermont.

US Supreme Court

The highest court in the United States, which has the final say on matters of federal law and the Constitution.

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What’s next

The case will now return to the district court for further proceedings to enforce the $655.5 million judgment against the PLO.

The takeaway

This ruling highlights the ongoing legal battles between victims of Palestinian terror attacks and the PLO, and the complex jurisdictional issues that have plagued such cases in US courts. The reinstatement of the multimillion-dollar award is a significant victory for the plaintiffs, but the ultimate resolution of the case remains to be seen.