A Palestinian-American property developer has asked a U.S. federal court to throw out a civil suit that accuses him of helping Hamas by way of development projects in Gaza. The motion to dismiss was filed on Friday in Miami on behalf of Bashar Masri and four companies he controls, officials in the filing said.
The lawsuit was lodged last year by U.S. families of victims of the October 7, 2023 Hamas assaults. The plaintiffs, numbering around 200 Americans, contend that Masri’s Gaza properties concealed tunnel access points used by the militant group in staging the attacks.
Masri, known for building luxury hotels in Gaza as well as Rawabi, the Palestinians’ first planned city in the occupied West Bank, faces allegations that his seaside hotels contained tunnels that Hamas accessed from guest rooms. The complaint also asserts that underground fortifications were powered by electricity from solar panels installed in an industrial zone he operated.
The plaintiffs are seeking monetary damages under the Anti-Terrorism Act, a U.S. law that permits American victims of terrorism to bring suit in U.S. courts. The complaint links Masri and his companies to the network of tunnels Hamas had constructed across much of Gaza prior to Israel’s war in Gaza.
In the motion to dismiss, Masri’s lawyers said he bears no responsibility for the October 7 attacks, which they described as "barbaric acts of terrorism". The filing said the defendants "unequivocally condemn Hamas’ violence and the suffering it inflicted upon innocent civilians" and argued the plaintiffs have not demonstrated that Masri knew his activities could facilitate Hamas in mounting attacks.
Masri’s legal team characterized the complaint as largely speculative, saying it improperly equates participation in economic development with engaging in international terrorism. The motion states the allegations amount to nothing more than conjecture that Masri and his companies "engaged in international terrorism merely by participating in economic development projects" in Gaza.
Masri declined to provide further comment. Lawyers for the plaintiffs did not immediately offer a response to the request for comment.
Those bringing the suit include an individual who was once a business partner of Masri. Eyal Waldman, described in the complaint as an Israeli technology entrepreneur and peace activist, lost his youngest daughter to militants at the Nova outdoor dance festival on October 7. Waldman previously worked with Masri on ventures that proponents said exemplified how economic cooperation could support peace.
One of Waldman’s companies had at one point employed more than 100 Palestinian engineers in Rawabi and in Gaza through an information technology firm backed by Masri. That collaboration was cited by both men as an example of cross-border economic engagement. Waldman did not immediately respond to a request for comment.
Masri’s profile as a developer has been high for years, and his work has attracted U.S. aid grants. His most prominent project is Rawabi, a $1.4 billion master-planned city in the occupied West Bank that was built by and for Palestinians. In Gaza, projects tied to his companies included two Mediterranean-front luxury resorts - the Ayan Hotel and the Blue Beach Resort - as well as the Gaza Industrial Estate located on the border with Israel.
All of those Gaza projects suffered major damage during the war. The complaint notes that Israeli bombardment reduced much of Gaza to ruins, and that the Ayan Hotel, the Blue Beach Resort and the Gaza Industrial Estate were heavily affected.
The motion to dismiss asks the Miami federal court to reject the claims against Masri and his companies on the grounds that the plaintiffs have not presented sufficient evidence that his conduct amounted to material support for terrorism or that he had knowledge his projects were being used to facilitate attacks.
As the case moves through the courts, it highlights tensions faced by businesses deciding whether to invest in territories governed by groups that the U.S. designates as terrorist organizations and where the tacit approval of such groups is often necessary for large-scale development.