A group of approximately 250 terror victims and their families have filed an unprecedented lawsuit against the Palestinian Authority (PA) and Hamas, demanding over NIS 1.75 billion in damages.
The lawsuit, filed in the Jerusalem District Court, accuses the PA and Hamas of direct responsibility for funding, encouraging, and executing terror attacks, including the October 7, 2023 massacre.
The legal action, spearheaded by attorneys Barak Kedem and Aryeh Arbuz from the law firm Arbuz Kedem Tzur, argues that both the PA and Hamas are liable for supporting terrorist activities that led to the devastating loss of life and injuries, as well as hostage situations in southern Israeli communities and the Nova music festival massacre.
New anti-terror law empowers lawsuit
The plaintiffs base their claims on Israel’s 2024 anti-terror law, which allows courts to impose punitive damages on entities that finance or support terrorism.
The lawsuits filed include two major claims: one for NIS 1 billion and another for NIS 750 million. Both claims involve victims from the October 7 attack as well as from earlier terror incidents.
In a significant legal development, the court has frozen NIS 410 million of Palestinian Authority funds to ensure compensation is available if the plaintiffs win.
What does the lawsuit highlight?
The lawsuit highlights the PA’s "pay-for-slay" policy, where convicted terrorists and their families receive monthly stipends, which the plaintiffs argue directly incentivizes terror activities.
“This is how we fight terrorism—by drying up its sources of funding,” said attorneys Kedem and Arbuz. “By awarding punitive damages to the victims, we aim to halt the financial and logistical support that fuels terror activities.”