U.S. Court Reinstates Palestinian Authority's Obligation to Pay $655 Million to 'Victims' of Second Intifada

Translation by SadaNews: The Federal Appeals Court in New York has reinstated a ruling from 2015 that ordered the Palestine Liberation Organization (PLO) and the Palestinian Authority (PA) to pay $655.5 million in damages to "victims" during the Second Intifada, as reported by the "Jerusalem Post".

The newspaper continued, translated by SadaNews: "Last week, a judge in the Federal Appeals Court issued a ruling reinstating the original 2015 decision in the Sokolow v. Palestinian Authority case".

The report added: "This negates the Second Circuit Court of Appeals in New York's decisions in August 2016, which ordered the dismissal of the $655.5 million terrorism case, stating that the judicial system had no jurisdiction over the Palestinian Authority or the Palestine Liberation Organization, and to the U.S. Supreme Court in April 2018".

The Hebrew report went on: "Since then, the Shurat HaDin Israeli Law Center, which led the lawsuit and hoped that the U.S. Supreme Court would affirm the original district court ruling, has continued its struggle to reinstate this decision. Their main argument revolves around the Palestinian Authority's "pay for slay" policy, which rewards Palestinians and their families for crimes against Jews, encouraging terrorism and making the Authority accountable for these actions".

According to the "Jerusalem Post": "The successful ruling issued last week was largely made possible due to a historic decision by the U.S. Supreme Court in May 2025, which determined that U.S. courts have jurisdiction to hear international terrorism claims against the Palestinian Authority due to its financial support and resources provided for attacks against American citizens".

Previously, U.S. courts were unclear about whether they had jurisdiction over claims from American victims of "terrorism" committed outside U.S. territory.

Regarding the case, the report stated: "The Sokolow case began in 2004, when families of victims of the Second Intifada filed a lawsuit against the PLO and the PA led by Shurat HaDin. Among the victims were members of the Gritz, Coulter, Blotstein, and Carter families, who lost their sons in the bombing of the Hebrew University cafeteria; and the Goldberg family, who lost their father in the bombing of bus number 19 in Jerusalem; as well as other victims including Shaina Gold, Jonathan and Alan Power, Shaul Mendelcorn, and Mark Sokolow, who were injured in separate attacks on Jaffa Road in Jerusalem".

The report added: "The basis of the Sokolow case was the Anti-Terrorism Act (ATA), enacted by Congress in 1992. In it, the families alleged that the PLO and PA financed and orchestrated seven separate attacks, claiming that these specific organizations were responsible for the attacks between January 2001 and February 2004".

In September 2008, Judge George Daniels in the Southern District of New York rejected the PLO's claim that the attacks were acts of war and not "acts of terrorism".

The trial in the Sokolow case began in the appeals court in 2015, and in February of that year, a jury found the PLO liable, ordering it to pay $218.5 million to the families.

As a result of enhancements in armed forces, this amount tripled to $655.5 million. The Palestinian Authority appealed this decision again, and the case cycled through the courts.

Miriam Fuld later joined the Sokolow case after the murder of her husband, Ari Fuld, who was stabbed in 2018 in a parking lot by a 17-year-old Palestinian. It was Fuld's case that led to the historic ruling in May 2025, which established a precedent for the prior Sokolow case.

The Hebrew report states: "Thanks to (the success of) Fuld's case, the Sokolow case was able to return to court".

It continues: "These cases were also supported by the introduction of the Justice for Victims of Terrorism Act (PSJVTA) in 2019, whereby Congress determined that certain actions by foreign entities, including payments associated with terrorist activity and ongoing activities related to the United States, could be considered as consent to U.S. courts' jurisdiction".

According to the Hebrew report: "It is worth noting that U.S. courts have no means to enforce the judgment against the Palestinian Authority or the PLO, nor can they compel them to pay. Instead, Shurat HaDin will initiate enforcement actions in Israel, which has become possible thanks to legal treaties made between Tel Aviv and Washington. Once this is completed, the matter will be referred to the Israeli judicial system, and it is expected to have implications for the tax money paid to the Palestinian Authority".