NEW YORK — A U.S. appeals court has tossed out a $654 million jury verdict against the Palestine Liberation Organization for damages Americans suffered in Palestinian terror attacks.

The United States government had said the case threatened to financially destabilize the Palestinian government and harm the region.

The 2nd U.S. Circuit Court of Appeals in Manhattan threw out the case Wednesday. The court said the federal courts lack personal jurisdiction over the defendants.

A jury last year awarded $218 million to Americans affected by Palestinian terror attacks that have killed Americans. The award was automatically tripled under the Anti-Terrorism Act.

In court papers after the jury verdict, the U.S. government said that if the Palestinian Authority were to collapse, there would be a security crisis impacting Israelis, Palestinians and others in the region.