In a dramatic legal development in the United States, the federal Court of Appeals in New York has reinstated the 2015 judgment in the precedent setting case of Sokolow v. the Palestinian Authority, ordering the defendants, the Palestine Liberation Organization and the Palestinian Authority to pay $655.5 million in damages to victims of terrorism from the period of the Second Intifada.
The ruling follows a landmark decision by the U.S. Supreme Court in May 2025, which determined that U.S. courts do have jurisdiction to hear international terrorism claims against the Palestinian Authority for its provision of financial support and resources to attacks against American citizens.
The original lawsuit was filed in 2004 against the Palestinian Authority and the PLO by ten families of terror victims injured during the Second Intifada. Among the victims were members of the Gritz, Coulter, Blutstein, and Carter families, who lost their children in the bombing of the Hebrew University Cafeteria; the Goldberg family, which lost the father in the bus No. 19 bombing in Jerusalem; and victims including Shaina Gold, Jonathan and Alan Bauer, Shaul Mendelcorn, and Mark Sokolow, who were injured in various attacks on Jaffa Road in Jerusalem.
In 2015, after a seven week long trial in Manhattan, a federal jury found the Palestinian Authority and the PLO liable for the terrorist attacks and awarded the victims $655.5 million in damages. The Palestinian Authority appealed the ruling on the grounds of lack of personal jurisdiction, and the Court of Appeals accepted the argument, finding insufficient connection and contacts between the Palestinian Authority and the United States in these terrorism claims, and shockingly vacated the judgment.
For ten years, the victims and their attorneys-Nitsana Darshan-Leitner of Israel and Kent Yalowitz of Arnold & Porter-waged a legal battle that eventually reached the U.S. Supreme Court and included legislative changes in Congress. Among these was the Promoting Security and Justice for Victims of Terrorism Act (PSJVTA), under which Congress established that certain conduct by foreign entities-including payments linked to terrorist activity and continued activities connected to the United States-may be deemed consent to the jurisdiction of U.S. courts.
In May 2025, the U.S. Supreme Court accepted the plaintiffs’ arguments and held that jurisdiction does exist. Central to the ruling was the Palestinian Authority’s policy of making payments (“Pay-for-Slay") to individuals involved in attacks against American citizens. Under the new law, such stipends to imprisoned terrorists create the necessary nexus to the United States and are treated as consent to the jurisdiction of its courts in terrorism cases. The Supreme Court upheld the constitutionality of this framework, paving the way for holding the Palestinian Authority accountable.
The Court of Appeals was then faced with the question of whether to reinstate the original judgment or allow the plaintiffs to retry the case. Taking into account the prolonged legal proceedings, the long passage of years and the U.S. Congress’s strong interest in combating terrorism, the court vacated its prior dismissal, ruled that the law applies retroactively, and reinstated the original judgment from 2015.
Attorney Nitsana Darshan-Leitner, who represents the victims in the case, stated: “This is a ruling that marks a historic turning point in the fight against terrorism. Not only does it restore the ability of American victims of terrorism to obtain compensation after years of struggle, it also changes the rules of the game: from now on, U.S. courts will be able to hear cases that previously could not even be brought before them. This is a day of great victory in our determined fight to cut off the financial lifelines of terrorist organizations."
Dr. Alan Bauer, an American biologist who along with his son was severely injured in a 2002 attack in Jerusalem and one of the plaintiffs in the case, said: “I never imagined that the road to justice would be so long and winding. But we refused to give up. We promised ourselves we would see this case through to the very end. We were determined to hold accountable those who carried out acts of terror against us and to finally make them answer for their guilt and their crimes. Today, we have achieved a precedent-setting victory."