Palestinian American developer asks US judge to dismiss lawsuit alleging he aided Hamas - Headlines news and analysis from Global Banking & Finance Review
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Palestinian American developer asks US judge to dismiss lawsuit alleging he aided Hamas

Published by Global Banking & Finance Review

Posted on May 8, 2026

3 min read

· Last updated: May 8, 2026

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Palestinian American Developer Seeks Dismissal of Lawsuit Alleging Hamas Aid

Overview of Lawsuit and Developer's Response

By Rami Ayyub

Background of the Lawsuit

JERUSALEM, May 8 (Reuters) - A prominent Palestinian-American developer asked a U.S. judge on Friday to throw out a lawsuit accusing him of supporting Hamas through his Gaza projects, arguing it equates participating in Gaza's economy with terrorism.

Bashar Masri, who built luxury hotels in Gaza and the Palestinians' first planned city in the West Bank, was sued last year by U.S. families of victims of the October 7, 2023, Hamas attacks who alleged his Gaza properties concealed tunnels the militant group used to stage its assault.

Hamas Tunnels and Business Challenges

Before Israel's war in Gaza, Hamas built a labyrinth tunnel network that stretched across nearly all of Gaza. Businesses often grappled with whether and how to invest in a territory ruled by a group deemed a terrorist organization by the U.S. and whose tacit approval was needed for large development projects.

Details of the Civil Complaint

The civil complaint, filed on behalf of around 200 American plaintiffs, alleges that Masri knew about Hamas tunnels under his two seaside hotels, which it says the group accessed from guest rooms. It also says the group powered underground fortifications with electricity from solar panels in an industrial zone he operated.

The plaintiffs are seeking damages from Masri and four of his companies under the Anti-Terrorism Act, which lets American victims of terrorism sue for damages in U.S. courts.

Developer's Legal Defense

Motion to Dismiss

Filing a motion to dismiss the complaint in federal court in Miami, Masri's lawyers said he bore no blame for the October 2023 attacks on Israel, describing them as "barbaric acts of terrorism".

Condemnation of Violence and Lack of Evidence

The defendants "unequivocally condemn Hamas’ violence and the suffering it inflicted upon innocent civilians", they wrote, adding that the plaintiffs had failed to show Masri knew his conduct could aid Hamas in staging attacks.

The complaint amounts to "speculation" that Masri and his companies "engaged in international terrorism merely by participating in economic development projects" in Gaza, Masri's lawyers wrote.

Masri declined to provide further comment. Lawyers for the plaintiffs did not immediately provide comment.

Plaintiffs and Developer's Background

Plaintiffs Include Masri's Ex-Business Partner

PLAINTIFFS INCLUDE MASRI'S EX-BUSINESS PARTNER WHOSE DAUGHTER WAS KILLED

Masri's Development Projects

Masri has had a high profile as a developer, and received U.S. aid grants. His flagship project is Rawabi, a $1.4 billion development in the occupied West Bank that is the first master-planned city built by and for Palestinians.

In Gaza, his companies' major projects included two Mediterranean-front luxury resorts - the Ayan Hotel and the Blue Beach Resort - and the Gaza Industrial Estate located on the border with Israel. All suffered major damage during the war, during which Israeli bombardment reduced much of Gaza to ruins.

Details on Plaintiffs and Their Connection

The plaintiffs include Israeli tech mogul Eyal Waldman, a peace activist and former business partner of Masri whose youngest daughter was among those killed by militants at the Nova outdoor dance festival on October 7.

One of Waldman's firms once employed more than 100 Palestinian engineers in Rawabi and in Gaza through an IT company backed by Masri, an arrangement both men held up as an example of how economic cooperation could foster peace.

Waldman did not immediately respond to a request for comment.

(Reporting by Rami AyyubEditing by Peter Graff)

Key Takeaways

  • Masri built Gaza projects—including luxury hotels and an industrial estate—now alleged by plaintiffs to have concealed Hamas tunnels and powered infrastructure beneath them (via solar and electricity) (jpost.com).
  • He says the suit improperly equates economic participation in Gaza with terrorism, calls it speculative, and condemns the October 7 attacks while rejecting any knowledge of aiding Hamas (jpost.com).
  • The plaintiffs seek damages under the Anti‑Terrorism Act and include former business partner Eyal Waldman, whose daughter was killed in the attack; earlier lawsuits also prompted Masri to resign a Harvard advisory post (jpost.com)

References

Frequently Asked Questions

Who is being sued in the Hamas-related lawsuit?
Bashar Masri, a Palestinian-American developer, is being sued by US families of victims of the October 7, 2023, Hamas attacks.
What are the allegations against Bashar Masri?
The lawsuit claims Masri's Gaza properties concealed Hamas tunnels used in attacks and that his projects powered Hamas fortifications.
What law is being cited in the lawsuit against Masri?
The plaintiffs are seeking damages under the US Anti-Terrorism Act, which allows American victims of terrorism to sue for damages.
What is Masri’s defense in the case?
Masri argues the case equates economic activity in Gaza with terrorism and denies any knowledge or support of Hamas activities.
Which projects in Gaza are mentioned in the lawsuit?
The Ayan Hotel, Blue Beach Resort, and Gaza Industrial Estate are named as major projects linked to the allegations.

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