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Arab Bank settles U.S. litigation over Hamas attacks

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(Reuters) — Arab Bank P.L.C. has agreed to settle litigation brought by hundreds of Americans who accused it of facilitating Hamas attacks in Israel, nearly a year after a U.S. jury found the bank liable.

The settlement was confirmed on Friday by Michael Elsner, a lawyer for the plaintiffs, and a spokesman for Arab Bank. The terms were not disclosed.

Mr. Elsner said the framework of the deal would be finalized over the next few months.

A trial had been scheduled to start Monday to begin determining how much the bank would have to pay the victims and their families.

Approximately 500 U.S. citizens who were either victims of two dozen Hamas attacks more than a decade ago or their family members had sued Arab Bank under the U.S Anti-Terrorism Act, which permits U.S. citizens to pursue claims arising from international terrorism.

In September 2014, a U.S. jury in Brooklyn found the Jordan-based bank knowingly supported Hamas in carrying out attacks, the first time a bank was held liable in U.S. court for violating the act.

That verdict covered 310 plaintiffs. A source familiar with the litigation said the settlement would include claims brought under the Anti-Terrorism Act by all 500 plaintiffs.

The plaintiffs said Arab Bank knowingly maintained accounts for Hamas operatives and facilitated payments for families of suicide bombers and those imprisoned or injured during a Palestinian uprising beginning in 2000.

Monday's trial, which was to include 17 plaintiffs, had been akin to so-called bellwether trials that are common in mass tort cases. The trial was expected to allow both sides to assess the damages for a few plaintiffs in order to gauge the potential overall amount of money at stake for the bank.

It was not clear how much in potential damages Arab Bank had faced.

Mr. Elsner, the plaintiffs' lawyer, had previously said that a verdict could have been for millions of dollars.

The case is Linde et al. v. Arab Bank, U.S. District Court for the Eastern District of New York, No. 04-2799.

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