BDL: US court dismisses lawsuit filed by Lebanese-American depositors

The Banque du Liban (BDL) said a U.S. federal court in New Jersey has dismissed a lawsuit filed by Lebanese-American depositors, ruling that the institution is protected by sovereign immunity.

In a statement, BDL said the case, filed on April 16, 2024, accused it of luring depositors' U.S. dollar funds through misleading assurances about the safety and accessibility of their deposits. The bank sought full dismissal, arguing that it is shielded under the Foreign Sovereign Immunities Act (FSIA) as a sovereign entity performing regulatory functions, not commercial activities.

According to the statement, U.S. District Judge Christine P. O'Hearn ruled on April 29, 2026, to dismiss the case in its entirety against BDL. The decision reaffirmed that central banks acting within their sovereign capacity are not subject to the jurisdiction of foreign courts under U.S. law.

The court found that the bank's actions fell within its role as a central monetary authority overseeing the banking sector and did not meet the criteria for the commercial activity exception under the FSIA.

BDL noted that the ruling is consistent with previous U.S. court decisions, including a 2022 judgment by the U.S. Court of Appeals in New York and a 2023 ruling by a federal court in New York, both of which upheld the bank’s sovereign immunity.

BDL said these rulings reinforce established legal precedent protecting central banks under international and U.S. law, and welcomed the decision as support for principles of legal sovereignty and judicial consistency.