Palestinian authorities ask Supreme Court to halt $656M judgment pending appeal

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WASHINGTON (AP) — Palestinian authorities asked the U.S. Supreme Court on Thursday to halt for now a $656 million judgment in a long-running lawsuit filed by Americans killed or wounded in attacks in Israel.

The emergency appeal comes after a lower court reinstated the damages in the wake of a Supreme Court decision that followed more than two decades of litigation.

The Palestine Liberation Organization and the Palestinian Authority said in court documents that paying the hefty judgment now would “destabilize critical government services Petitioners provide in the West Bank, injure innocent citizens, and jeopardize regional security.”

They asked the justices to pause payment as they appeal the reinstatement of the verdict.

The lawsuit was filed by victims of attacks in Jerusalem in the early 2000s that killed 33 people and wounded hundreds more. Families brought their lawsuit under the Anti-Terrorism Act, a law aimed at opening U.S. courts to victims of international terror attacks.

A federal court in New York tossed the original verdict on appeal and continued to rule in favor of the Palestine Liberation Organization and the Palestinian Authority as Congress revised the law to allow suits to go forward. In 2025, the Supreme Court sided with the families and revived the lawsuits.

The 2nd U.S. Circuit Court of Appeals agreed to reinstate the verdict in March. Attorneys for the plaintiffs said at the time that the families were pleased and relieved by the decision, saying it would allow “justice to be done.”

They declined to comment on Thursday's petition.