The Supreme Court says it will decide whether Jordan-based Arab Bank can be liable for claims that it helped finance terror attacks in Israel, the West Bank and Gaza.
The justices agreed Monday to hear an appeal from victims and their families seeking damages for attacks that took place between 1995 and 2005.
A federal appeals court in New York ruled that the bank was immune from such lawsuits.
The victims and their relatives argue that the bank is liable for providing material support to terrorist groups. The bank denies the allegations and argues that allowing the claims to go forward would interfere with U.S. foreign policy and lead to diplomatic friction.
The Supreme Court is expected to hear the case when its new term begins in the fall.