US upholds $655 million judgment vs. Palestinians for 2002 to 2004 killing of Americans in Jerusalem

U.S. Supreme Court Justice Sonia Sotomayor on Monday declined to halt a $655.5 million judgment requiring the Palestinian Authority and the Palestine Liberation Organization (PLO) to pay damages to American victims of attacks in Israel between 2002 and 2004.

Sotomayor rejected the request to temporarily block enforcement of the judgment while the Palestinian authorities appeal a lower court ruling that revived the long-running case. She did not provide an explanation for the decision and did not refer the matter to the full Supreme Court.

The lawsuit was filed on behalf of Americans who were killed or injured in a series of shootings and bombings in the Jerusalem area from 2002 to 2004. A New York federal court awarded the plaintiffs $655.5 million in damages in 2015.

The case was dismissed in 2016 after the 2nd U.S. Circuit Court of Appeals ruled that the federal court lacked jurisdiction. The U.S. Supreme Court declined to hear the plaintiffs' appeal in 2018.

Congress later passed the Promoting Security and Justice for Victims of Terrorism Act in 2019, allowing lawsuits against the Palestinian Authority and the PLO under certain conditions. The law considers the Palestinian entities to have consented to U.S. jurisdiction if they engage in specific activities in the United States or make payments to individuals involved in attacks against Americans.

In June 2025, the U.S. Supreme Court unanimously upheld the law, overturning a lower court ruling that had found it unconstitutional. Following that decision, the Manhattan-based 2nd U.S. Circuit Court of Appeals reinstated the judgment in March.

The Palestinian Authority and the PLO argued that enforcing the judgment would cause severe financial damage, disrupt essential government services in the West Bank, and threaten regional stability. They said the plaintiffs planned to seek payment from Palestinian tax revenues collected by Israel, a major source of funding for public services such as security, sanitation, and education.

The Palestinian authorities also argued that the judgment was no longer legally valid because the original case had been dismissed and appeals had ended in 2018. However, Sotomayor's decision allows enforcement of the judgment to proceed while the appeal continues.

The case remains one of the most significant legal disputes involving U.S. anti-terrorism laws and the ability of American victims to seek damages from Palestinian authorities in U.S. courts. -Reporting by Andrew Chung; Editing by Will Dunham/Reuters