Appeals Court Reinstates $656M Judgment Against PLO and Palestinian Authority

Ruling comes after Supreme Court upheld law allowing lawsuits over overseas attacks against Americans.

Apr. 6, 2026 at 1:18am

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A U.S. appeals court has reinstated a $656 million judgment against the Palestine Liberation Organization (PLO) and the Palestinian Authority, following a Supreme Court ruling that allowed victims of overseas attacks to sue the groups in American courts.

Why it matters

This case highlights the ongoing legal battles between American victims of terrorism and Palestinian authorities, with the courts weighing issues of jurisdiction, liability, and the rights of U.S. citizens harmed in attacks abroad.

The details

The 2nd U.S. Circuit Court of Appeals initially tossed out the $656 million verdict a decade ago, ruling that U.S. courts could not consider lawsuits against foreign groups over overseas attacks not aimed at the United States. However, the appeals court has now reinstated the judgment in light of a 2019 law passed by Congress to allow these victim lawsuits to move forward against the PLO and Palestinian Authority.

  • The original $656 million judgment was first issued over a decade ago.
  • The Supreme Court ruling that enabled the reinstatement of the judgment was issued in June 2025.
  • The 2nd Circuit Court of Appeals reinstated the judgment on March 30, 2026.

The players

Palestine Liberation Organization (PLO)

A political and paramilitary organization that represented the Palestinian people and advocated for Palestinian independence.

Palestinian Authority

The interim self-government body established in 1994 to govern parts of the West Bank and Gaza Strip.

Kent Yalowitz

An attorney representing the American victims and their families in the lawsuit.

Nitsana Darshan-Leitner

Another attorney for the plaintiffs, who expressed satisfaction with the court's decision after over 22 years of litigation.

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What they’re saying

“Our client families are very relieved that the court has reinstated the judgment without requiring a new trial. They have been waiting for a very long time for justice to be done.”

— Kent Yalowitz, Attorney for Plaintiffs

“I was pleased with the decision after 22 years of litigation.”

— Nitsana Darshan-Leitner, Attorney for Plaintiffs

What’s next

The Palestinian authorities may choose to appeal the reinstatement of the $656 million judgment to the U.S. Supreme Court.

The takeaway

This case underscores the long-running legal battles between American victims of overseas terrorism and Palestinian authorities, with the courts grappling with complex issues of jurisdiction, liability, and the rights of U.S. citizens harmed in attacks abroad.