The U.S. Supreme Court on Aug. 3 declined to pause a $655.5 million judgment against the Palestinian Authority (PA) and the Palestine Liberation Organization (PLO) in a lawsuit stemming from attacks in Israel between 2002 and 2004 that killed or injured Americans. Justice Sonia Sotomayor, acting on the court’s emergency docket, issued the order without explanation or referral to the full court.
The judgment, originally rendered by a federal jury in New York in 2015, was reinstated by the U.S. Court of Appeals for the Second Circuit in March 2025 after the Supreme Court upheld the 2019 Promoting Security and Justice for Victims of Terrorism Act in a 9-0 decision last year. The law established jurisdiction over Palestinian entities for such claims.
The PA and PLO had sought an emergency stay to halt enforcement while they pursued further appeals, arguing that enforcing the judgment would cause severe financial harm to West Bank governance and destabilize regional security. They contended that payment would draw from indirect tax revenue collected by Israel, a critical funding source for Palestinian government operations, including security, sanitation, and education.
The respondents, led by Mark Sokolow, the lead plaintiff in the underlying lawsuit, represent U.S. citizens or representatives of deceased Americans killed or injured in the attacks. They have long argued that the judgment should be enforced, asserting that the 2019 law created the necessary jurisdiction over the Palestinian entities. The denial of the emergency application means enforcement may proceed in the federal district court where the jury verdict was originally issued, unless further legal relief is obtained.
The Supreme Court’s order does not resolve the underlying legal question of whether a previously voided judgment can be reinstated under the new law. The case remains active in lower courts, with potential for additional appeals.
Key Background
The lawsuit, filed under the Anti-Terrorism Act, alleges that the PA and PLO were responsible for six attacks in the Jerusalem area between 2002 and 2004, including shootings and bombings. A federal jury in 2015 awarded the plaintiffs $655.5 million in damages, but the Second Circuit overturned the verdict in 2016, citing lack of jurisdiction. The reinstatement in March 2025 followed the Supreme Court’s affirmation of the 2019 law, which expanded legal avenues for U.S. victims of international terrorism to seek compensation from foreign entities.
The PA and PLO have consistently maintained that the attacks were not officially sanctioned by Palestinian authorities and that the lawsuit unfairly targets their interim governing institutions. They also warned that enforcement of the judgment could disrupt essential services in the West Bank, where financial constraints are already severe.
The plaintiffs, represented by legal teams specializing in terrorism litigation, have emphasized that the judgment represents accountability for acts of violence against U.S. citizens abroad. They argue that the 2019 law provides a clear legal pathway for victims to pursue damages, regardless of the political status of the entities involved.
The case now returns to the U.S. District Court for the Southern District of New York, where enforcement proceedings may proceed unless further judicial intervention occurs.