Arab Bank PLC had to settle with the victims of terrorist attacks that it helped fund. But Arab Bank has won an appeal in a separate but related case. One of the laws used by lawyers who seek compensation for the victims of human rights abuses or terrorism overseas is the Alien Tort Statute. An appellate court has sided with a lower court that the ATS does not apply in this particular case. This is an unfortunate development in the legal fight to bankrupt terrorism, but there are still other legal recourses available.
From Courthouse News last week:
MANHATTAN (CN) – Months after Arab Bank settled an anti-terrorism lawsuit filed by U.S. citizens, the Second Circuit refused today to revive a different case the bank faced by foreigners whose families were maimed or killed in attacks on Israel.
Following suicide bombings on Israeli civilians between 2000 and 2004, families of the victims brought lawsuits in U.S. federal courts against Arab Bank and other institutions they accused of supporting terrorists.
The U.S. citizen victims won a verdict holding Arab Bank liable for the attacks last year, and then reached a confidential settlement with the Amman, Jordan-based bank days before the start of another trial to determine damages.
Still keeping mum on those terms, the bank contests reports that it agreed to pay the families $1 billion.
Arab Bank still faced a lawsuit in Manhattan by foreign citizens killed in those attacks, but the Second Circuit ruled Tuesday that this case fails under the Alien Tort Statute…