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US Appeals Court Reinstates $655M Ruling Against Palestinian Authorities Over Terrorism
Palestinian Authority President Mahmoud Abbas looks on as he visits the Istishari Cancer Center in Ramallah, in the West Bank, May 14, 2025. Photo: REUTERS/Mohammed Torokman
A US federal appeals court on Monday reinstated a whopping $655.5 million judgment against the Palestine Liberation Organization (PLO) and the Palestinian Authority (PA), delivering a major legal victory for American victims seeking to hold the groups responsible for the notorious “pay-for-slay” terrorism program.
The ruling by the US Court of Appeals for the Second Circuit restored a jury’s earlier finding that the PLO and PA bore civil liability under the Anti-Terrorism Act for a series of attacks in Israel that killed and injured US citizens.
In its opinion, the court recalled its previous mandate vacating the initial decision, writing that doing so was warranted by “intervening changes in underlying law” and the need to prevent an unjust outcome after years of litigation. The panel emphasized that appellate courts retained the authority to revisit earlier decisions in “extraordinary circumstances,” a standard it found satisfied in this case.
The judges also addressed the issue of jurisdiction, which had previously served as an obstacle in the case.
In 2023, a federal appeals court ruled that US courts did not have the authority to hear certain lawsuits against the PLO and the PA stemming from terrorist attacks abroad that killed or injured American citizens. In a decision issued by Second Circuit court, the panel concluded that Congress could not compel foreign defendants to face litigation in US courts without sufficient ties to the country, dealing a significant setback to victims seeking damages through American legal channels.
But the court signaled that subsequent legal developments from the Supreme Court and evolving interpretations of the Anti-Terrorism Act altered the analysis enough to justify reinstating the judgment.
At the center of the case was the Anti-Terrorism Act’s provision allowing US nationals to seek civil damages for acts of international terrorism. A jury had originally awarded damages to victims and their families, finding a link between the alleged terrorists and attacks targeting civilians. Those damages resulted in the mandated enforcement of the more than $650 million judgment.
For victims’ families and advocates, the decision marked a significant step toward enforcing consequences against groups accused of supporting or incentivizing violence.
Supporters have argued that lawsuits play a critical role in deterring terrorism, particularly when criminal prosecution is not possible. By reinstating the judgment, the court appeared to endorse the broader principle that US law can serve as a tool of accountability, even in cases involving foreign actors and overseas attacks.
The court cautioned that enforcement presents a distinct set of legal and practical challenges. It pointed to potential obstacles including asset location, sovereign protections, and the complexities of executing judgments against foreign entities.
The Palestinian Authority, which exercises limited self-governance in the West Bank and has long been riddled with accusations of corruption, has for years carried out a so-called “pay-for-slay” program, which rewards terrorists and their families for carrying out attacks against Israelis.
Under this policy, official payments are made to Palestinian prisoners held in Israeli jails, the families of “martyrs” killed in attacks on Israelis, and Palestinians injured in terrorist attacks.
Reports estimate that approximately 8 percent of the PA’s budget has been allocated to paying stipends to convicted terrorists and their families.
Skeptics suggest the hurdles in seeking financial retribution from the PLO and PA could prove substantial. The PLO and PA maintain limited assets within the US, and some may be protected from seizure. Efforts to enforce the judgment could also raise sensitive diplomatic concerns, particularly given the entities’ role in international negotiations and governance.
The case is likely to have far-reaching implications for future terrorism litigation, particularly as Congress continues to explore ways to expand the reach of US courts in holding foreign actors accountable.
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UCLA student government condemns campus Hillel for hosting former hostage
A campus event featuring freed Israeli hostage Omer Shem Tov drew the condemnation of UCLA’s student government on Tuesday. In an open letter, the UCLA Students Associated Council said that bringing Tov to speak to students “served to legitimize and normalize” atrocities in Gaza and Lebanon.
Shem Tov, 23, was kidnapped from the Nova music festival in Southern Israel on Oct. 7, 2023, and held hostage in Gaza until his release in a prisoner exchange in February 2025. UCLA hosted him on April 14 for a Yom HaShoah event.
“While we affirm the humanity of all people impacted by violence, we reject the selective platforming of narratives that obscure the broader reality of ongoing state violence,” the student government letter wrote in the letter, which was addressed to the UCLA administration and UCLA Hillel among others. “Israel is currently continuing to carry out what has been widely identified by human rights advocates as a genocide in Gaza, while also expanding its illegal military campaign into Lebanon.
“In this context, elevating a single narrative, absent of critical political and humanitarian framing, serves to legitimize and normalize these ongoing atrocities.”
Rabbi Chaim Seidler-Feller, UCLA Hillel’s director emeritus, called the statement “completely ridiculous.”
“You can’t present the narrative of your experience without it being called ‘one sided,’” Seidler-Feller said. “There has to be a counter-story to persecution. Is there a counter-story to killing people?”
UCLA Hillel executive director Daniel Gold dismissed the criticism in Tuesday’s letter as antisemitic.
“Hillel at UCLA and Students Supporting Israel UCLA would like to apologize…for absolutely nothing,” he wrote in a statement. “Members of UCLA student government have once again shown they are anti-dialogue, anti-learning, anti-truth, anti-student and antisemitic.”
The USAC did not respond to a request for comment.
As college campuses across the country became a hotspot for pro-Palestinian activism following the Oct. 7 attack, UCLA, with an activist history and a large Jewish population, stood out as a major flashpoint. Its student encampment was the site of a riot in April 2024 and eventually cleared by police in riot gear.
The USAC has sided with pro-Palestinian protesters throughout. In a Feb. 2025 letter titled “We Are All SJP,” the USAC, which is democratically elected by the roughly 30,000-member UCLA student body, condemned Chancellor Julio Frenk’s suspension of Students for Justice in Palestine. The letter referred to Israel only as “the Zionist state” or put the country’s name inside quotation marks.
The University of California has since been sued by the Department of Justice, which said that UCLA created a hostile work environment against Jewish and Israeli faculty in violation of Title VII of the Civil Rights Act.
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Trump extends ceasefire with Iran, even after Iran balks at new round of negotiations
(JTA) — President Donald Trump announced on Tuesday that he would unilaterally extend the U.S.-Israeli ceasefire with Iran, even though Iran had not agreed to his conditions or even to return to the negotiating table.
Trump announced the decision on Truth Social just hours before the two-week-old deal was set to expire. Citing Iran’s “fractured” leadership, Trump wrote that he had been asked by Pakistani Prime Minister Shehbaz Sharif to “hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal.”
Vice President JD Vance’s planned trip to Islamabad, where talks were set to take place, was postponed indefinitely after Iran failed to confirm its participation in negotiations.
Trump added that the United States would maintain its naval blockade of Iranian ports in the Strait of Hormuz, despite Iran’s repeated calls for the restrictions to be lifted.
The announcement marked a sharp departure from the president’s statements earlier in the day, telling CNBC that, if a deal was not made before the deadline, “I expect to be bombing.”
In a statement Tuesday, Sharif thanked Trump for his “gracious acceptance” of Pakistan’s request to extend the ceasefire, adding that the country would “continue its earnest efforts for a negotiated settlement of the conflict.”
The announcement adds to uncertain about the war’s future, including for Israelis who lived through six weeks of Iranian bombing, and renews questions about Trump’s commitment to achieving his war goals, which have varied and included blunting Iran’s nuclear ambitions, achieving regime change, and destroying Iran’s stockpile of ballistic missiles. He said earlier this week that he was asking Iran to limit its nuclear program for 20 years, five years longer than was required by the deal struck by Barack Obama in 2015. Trump exited that deal in 2018.
Last week, Trump announced a different ceasefire, between Israel and Lebanon, on Truth Social, contradicting Israel’s claim that the Iran ceasefire would not apply to its fighting with Hezbollah, an Iran-backed proxy in Lebanon.
Trump’s announcement of the ceasefire extension came during the night in Israel, after Israelis began their celebration of Independence Day. It drew criticism from one of his staunchest pro-Israel supporters, the Zionist Organization of America, whose national president Morton Klein said in a statement that “interminable delay is the standard Islamic Iranian regime negotiating tactic” and that acceding to it represented a victory for Iran. The statement did not mention Trump.
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Alan Dershowitz quits Democratic Party, calling it ‘most anti-Israel party in U.S. history’
(JTA) — Alan Dershowitz, the prominent pro-Israel attorney whose clients have included Donald Trump and Jeffrey Epstein, announced on Monday that he was leaving the Democratic party and registering as a Republican.
Describing himself as a “lifelong Democrat,” Dershowitz wrote in a Wall Street Journal op-ed that he had decided to “bite the bullet and register as a Republican,” citing Democratic support for an arms embargo on Israel last week and the Michigan Senate candidate Abdul el-Sayed’s anti-Israel rhetoric.
“There is no denying that the hard left, anti-Israel wing of the Democratic Party has moved from the fringe to the mainstream,” Dershowitz wrote, adding that “Republicans have their own antisemitic fringe, but for now it remains a fringe.”
The announcement formalized a political evolution for Dershowitz, who defended Trump during his first impeachment and has increasingly broken with Democrats over Israel in recent years.
In 2021, Dershowitz nominated Jared Kushner, Trump’s son-in-law, and Avi Berkowitz, Trump’s top Middle Eastern envoy during his first administration, for the Nobel Peace Prize over their hand in shaping the Abraham Accords.
Dershowitz — who has recently faced scrutiny over his ties to Epstein, and previously denied allegations of sexual misconduct made by one of Epstein’s accusers — panned the Democratic Party as the “most anti-Israel party in U.S. history” in the op-ed.
“I believe that the Democratic Party’s hostility to Israel represents a deeper and more dangerous shift away from the center and toward a radical approach that is bad for America and the free world,” Dershowitz wrote, adding that he intended to “work hard to prevent the Democrats from gaining control of the House and Senate.”
Dershowitz’s comments are in line with Trump’s statements about Jews and the Democratic Party. He has repeatedly expressed amazement at how any Jews could vote for the Democrats considering his own record when it comes to Israel.
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