US 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. The ruling follows a U.S. Supreme Court decision that favored Americans who were killed or wounded in attacks in Israel.

The decision, dated March 30, 2026, restores a verdict that had been previously overturned. The appeals court had originally tossed out the judgment a decade prior, based on the legal grounds that U.S. Courts did not have the authority to consider lawsuits against foreign groups for overseas attacks that were not specifically aimed at the United States.

Legal Basis for Reinstatement

The reinstatement of the judgment is based on a U.S. Supreme Court ruling issued in June 2025. That ruling upheld a 2019 law enacted by Congress, which was specifically designed to allow lawsuits from victims to proceed against the Palestine Liberation Organization and the Palestinian Authority.

In their decision, the appeals judges stated that the original judgment for the plaintiffs should be reinstated, noting that this conclusion is consistent with the plain import of the Supreme Court’s decision.

Impact on Plaintiffs

The ruling allows the victims and their families to pursue the $656 million award without the requirement of a new trial. Kent Yalowitz, an attorney representing the client families, stated via email that the families are relieved by the court’s decision, noting they have been waiting for a long time for justice to be done.

The case involves claims brought under the Antiterrorism Act, seeking damages for injuries and deaths resulting from attacks carried out in Israel.