Palestinian-American billionaire Bashar Masri is at the center of a lawsuit filed by families of American victims killed in the October 7, 2023, Hamas attack on Israel.

Nearly 1,200 Israelis were killed, and 240 hostages were taken when Hamas launched a coordinated attack across the Gaza border.

 The lawsuit, filed on Monday in DC, alleges that Masri played a significant role in helping Hamas prepare for the attack by allowing his companies to aid in constructing vital military infrastructure.

It is alleged the construction was paid for by USAID, and Masri also obtained huge grants from the World Bank through one of their subsidiaries, International Finance Corporation (IFC).

American Victims of October 7 Sue Bashar Masri

The plaintiffs accuse Masri of using his Gaza-based companies—including Palestine Development & Investment Company (PADICO), Palestine Real Estate Investment Company (PRICO), and Palestinian Industrial Estate Development Company (PIEDCO)—to secretly support Hamas operations. 

According to the suit, these companies provided cover for the construction of tunnels, rocket launch sites, and even power generation facilities used by Hamas.

“Masri and the companies he controls... developed and operated prime properties in Gaza for outwardly legitimate purposes. But in reality, they were also used to construct and conceal Hamas’s attack tunnels, store and launch its rockets at Israel, host Hamas leadership and foot soldiers, train Hamas naval commandos—and even to produce electricity for Hamas’s attack tunnel infrastructure,” the lawsuit reads.

 “Just prior to the October 7 Attack, Masri even installed an individual closely tied to Hamas as Chairman of PIEDCO.”

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Use of US Taxpayer Funds

One of the allegations is that much of the construction was funded by US taxpayer dollars through the United States Agency for International Development (USAID).

“By actively working with Hamas to build and maintain its attack tunnel infrastructure while simultaneously advancing Hamas’s campaign of deception, Defendants aided and abetted and conspired with Hamas, and the October 7 Attack and the deaths of soldiers and civilians thereafter were a foreseeable consequence of Defendants’ collaboration with Hamas,” the filing continues.

The families are bringing the suit under the Anti-Terrorism Act (ATA), as amended by the Justice Against Sponsors of Terrorism Act (JASTA).

🔗 View the full court document

Masri Denies All Allegations

Masri has strongly denied the claims. A spokesperson from his office told The New York Times that he was unaware of the lawsuit before media reports and characterized it as “baseless.”

“He was shocked to learn through the media that a baseless complaint was filed today referring to false allegations against him and certain businesses he is associated with,” said the statement.

 “Neither he nor those entities have ever engaged in unlawful activity or provided support for violence and militancy,” the office added.

High Society Ties and Business Interests

Masri is a prominent figure in Washington, D.C. and lives up the street from a former U.S. president and assorted political leaders and diplomats.

He is a member of the Dean’s Council at Harvard University’s Kennedy School of Government and works with elite donors through the Middle East Investment Initiative.

One focal point in the lawsuit is the Gaza Industrial Estate, described as the “crown jewel” in Masri’s portfolio. 

Plaintiffs allege it was constructed using funds from USAID and the World Bank’s International Finance Corporation (IFC) and secretly harbored tunnels used in the attack.

Legacy of the October 7 Attack

The complaint names Masri’s luxury hotels—the Blue Beach and Al Mashtal—as meeting spots for Hamas operatives, including Yahya Sinwar, the architect of the October 7 attack.

Sinwar was killed by the IDF in October 2024.

“Hamas operatives and leaders—including the architect of the October 7 Attack, Yahya Sinwar—regularly used the hotels to host public and private Hamas events,” the complaint reads. 

“Hamas officials also used the hotel for private functions, relaxing in the luxury accommodations and facilities that few Gazans can afford.”

“Masri cloaked himself in legitimacy in service of this grand deception,” the lawsuit asserts.