Arab Bank Settlement Over Terrorist Attacks Tied to U.S. Appeal

NEW YORK (Reuters) -

Arab Bank Plc’s agreement to settle litigation brought by Americans who accused it of facilitating terrorist attacks in Israel is linked to the outcome of an appeal of a jury’s 2014 verdict finding it liable, according to a court filing.

District Judge Brian Cogan in Brooklyn signed off on a $100 million judgment Tuesday for 16 plaintiffs whose cases were set to be the subject of a damages trial that was called off after the settlement was announced in August.

But the order, which was acting on a joint stipulation from the parties, also indicated that Jordan-based Arab Bank planned to move ahead with an appeal of the verdict finding it liable in connection with two-dozen attacks attributed to Hamas.

The parties confirmed Wednesday that the amount Arab Bank owes will be dependent on that appeal.

Gary Osen, a lawyer for the plaintiffs, said in an email the plaintiffs’ “recovery will be substantially affected by the outcome of the appeal.”

The confidential settlement covers 527 plaintiffs, including the 16 whose case was to be the subject of the damages trial, and resolves claims they brought under the U.S. Anti-Terrorism Act.

The plaintiffs included both victims of attacks carried out by Hamas and other groups, and family members of the victims.

Arab Bank in January said it had accumulated $1 billion in provisions for the case that would cover “expected obligations” under the settlement agreement.