Arab Bank says report of $1bn settlement is ‘inaccurate’

Arab Bank Plc on Friday described as “inaccurate” a report that it would pay “slightly more” than $1bn to settle litigation brought by hundreds of Americans who accused it of facilitating militant attacks in Israel.

Citing an unnamed lawyer with knowledge of the settlement, the trade magazine The American Lawyer reported that Arab Bank had agreed to pay “slightly more than $1bn” to settle.

In response to the report, Arab Bank said in a statement, “The terms are confidential and we will not comment on them specifically beyond saying the report is inaccurate.”

The Jordan-based bank reached a deal last week to avert a damages trial, after a federal jury in Brooklyn, New York, last September found it liable in connection with two dozen attacks attributed to Hamas.

Michael Elsner, a lawyer at Motley Rice representing the families, issued an identical statement.

Approximately 500 U.S. citizens had sued Arab Bank under the U.S. Anti-Terrorism Act, which permits U.S. citizens to pursue claims arising from international terrorism.

Last year’s verdict marked the first time a bank was held liable in U.S. court for violating that law.

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