A US court in New York dismissed a case worth $900 million against the Palestinian Authority (PA) and the umbrella Palestine Liberation Organization (PLO).
The case was filed by Jewish Americans demanding compensations for the death of their relatives in attacks in the occupied West Bank.
In a statement on Sunday, the Palestinian Finance Ministry described the court ruling as a "breakthrough" in regards to dismissing cases against the PA and PLO of supporting terrorism.
"The court verdict was issued despite repeated attempts by the plaintiffs and right-wing organizations to file cases against Palestine for financial compensations worth millions of dollars," the ministry said.
According to the statement, the US court found that a recent Congress decision subjecting the PA and PLO to the jurisdiction of the US law was "unconstitutional."
Last week, a court in Manhattan also dismissed another similar case worth hundreds of millions against the PA.
Since 2002, the PA and PLO faced several cases brought to courts by Jewish families and groups claiming that their relatives were killed by Palestinians in the occupied West Bank.
Under international law, all Jewish settlements in occupied territories including the West Bank and East Jerusalem are considered illegal.
