NEW YORK - A federal judge has upheld the right of U.S. victims of terror attacks in Israel to sue the Palestine Liberation Organization.

U.S. District Judge Hon. George Daniels in Manhattan rejected a request by the PLO to toss out a lawsuit brought in 2004 on behalf of victims and their families.

The PLO had argued that the lawsuit should be filed in Israel and that the PLO is protected by sovereign immunity.

The judge Tuesday rejected those arguments and ordered limited discovery to go forward in the case.