The settlement came just days before a trial was scheduled to determine monetary damages against the bank.
The plaintiffs said the bank transferred more than $70 million to an alleged Saudi terror entity, charities they claim were a front for Hamas and 11 globally-designated terrorist clients.
Three hundred plaintiffs sued the Bank, including victims and relatives of victims of attacks carried out in Israel, Gaza and the West Bank between 2001 and 2004.
Last year, a US jury in a federal court in Brooklyn found the Jordan-based multinational liable for financing terrorism by transferring funds for members of Hamas.
