Palestinian-American Developer Bashar Masri Moves to Dismiss Lawsuit Alleging He Aided Hamas Through Gaza Hotels and Industrial Projects

U.S. judge on May 8 2026 to throw out a lawsuit accusing him of supporting Hamas through his Gaza projects. Bashar Masri filed the motion to dismiss in federal court in Miami.

U.S. families of victims of the October 7 2023 Hamas attacks. The lawsuit was brought on behalf of around 200 American plaintiffs. They allege that Masri knew about Hamas tunnels under his two seaside hotels which the group accessed from guest rooms.

The plaintiffs further allege that Hamas powered underground fortifications with electricity from solar panels in an industrial zone operated by Masri. The plaintiffs are seeking damages from Masri and four of his companies under the Anti-Terrorism Act. Masri's lawyers filed a motion to dismiss the complaint.

They described the October 2023 attacks on Israel as barbaric acts of terrorism. "The defendants unequivocally condemn Hamas’ violence and the suffering it inflicted upon innocent civilians," Masri's lawyers wrote. They added 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, they wrote. Bashar Masri is a prominent Palestinian-American developer. He founded Rawabi, the first planned Palestinian city in the West Bank.

4 billion development in the occupied West Bank. Masri's companies built two Mediterranean-front luxury resorts in Gaza: the Ayan Hotel and the Blue Beach Resort. His companies operated the Gaza Industrial Estate located on the border with Israel.

All of Masri's Gaza projects suffered major damage during the war. The plaintiffs include Eyal Waldman, an Israeli tech mogul, peace activist and former business partner of Masri. Eyal Waldman's youngest daughter was killed by militants at the Nova outdoor dance festival on October 7 2023.

One of Waldman's firms once employed more than 100 Palestinian engineers in Rawabi and in Gaza through an IT company backed by Masri. S. aid grants.

Before Israel's war in Gaza, Hamas built a labyrinth tunnel network that stretched across nearly all of Gaza. S. and whose tacit approval was needed for large development projects.

Masri declined to provide further comment on the case. Lawyers for the plaintiffs did not immediately provide comment. Waldman did not immediately respond to a request for comment. com reported that the arrangement between Masri and Waldman was once held up as an example of how economic cooperation could foster peace.