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Masri Seeks Toss of Hamas Suit Over Gaza Projects

Jerusalem — Palestinian-American developer Bashar Masri asked a U.S. federal judge in Miami on Friday to dismiss a lawsuit accusing him of aiding Hamas through business projects in Gaza, arguing the complaint improperly equates economic investment in the enclave with support for terrorism.

The lawsuit was filed last year by around 200 American plaintiffs, including families of victims killed in the Oct. 7, 2023 Hamas-led attack on Israel. The plaintiffs allege Masri knowingly facilitated Hamas operations through properties and infrastructure linked to companies under his control.

According to court filings, the plaintiffs claim tunnels used by Hamas militants were concealed beneath two Gaza beachfront hotels developed by Masri’s companies, the Ayan Hotel and the Blue Beach Resort. The complaint further alleges that electricity generated by solar panels in an industrial zone operated by Masri’s firms supplied underground Hamas fortifications.

The plaintiffs are seeking damages under the U.S. Anti-Terrorism Act, which allows American victims of terrorism to pursue civil claims in U.S. courts against individuals or entities accused of materially supporting designated militant organizations.

In a motion seeking dismissal of the case, Masri’s lawyers rejected the allegations and condemned the Oct. 7 assault, which triggered Israel’s military campaign in Gaza.“The defendants unequivocally condemn Hamas’ violence and the suffering it inflicted upon innocent civilians,” Masri’s attorneys wrote in the filing, arguing the plaintiffs failed to establish that Masri knowingly engaged in conduct intended to support Hamas operations.

The filing described the complaint as speculative and said the allegations were based on the premise that participating in Gaza’s economy under Hamas rule amounted to aiding the group.Masri declined additional comment. Lawyers representing the plaintiffs did not immediately respond to requests for comment.Before the war, Hamas oversaw governance in Gaza and maintained an extensive tunnel network beneath the territory.

Foreign and Palestinian businesses operating in Gaza frequently navigated commercial and regulatory conditions shaped by Hamas’ control, even as the group remained designated as a terrorist organization by the United States.

Masri is among the most prominent Palestinian business figures in the Middle East and is best known for developing Rawabi, the first master-planned Palestinian city in the occupied West Bank. The $1.4 billion project received international backing and U.S. development assistance grants.His companies also developed major commercial ventures in Gaza, including luxury coastal resorts and the Gaza Industrial Estate near the Israeli border.

Much of the enclave’s infrastructure, including those projects, sustained heavy destruction during Israel’s military offensive following the Oct. 7 attacks.Among the plaintiffs is Israeli technology entrepreneur Eyal Waldman, whose daughter was killed during the attack on the Nova music festival in southern Israel.

Waldman had previously partnered with Masri on technology initiatives employing Palestinian engineers in Rawabi and Gaza, ventures both men had publicly described as examples of economic cooperation between Israelis and Palestinians.Waldman did not immediately respond to a request for comment.