A US judge has dismissed a lawsuit against the UN agency for the Palestinians, UNRWA, saying that UNRWA has immunity.

The ruling contradicts a statement by federal authorities earlier this year, stating that UNRWA did not have immunity in the case.

The lawsuit, the Estate of Tamar Kedem Simon Tov v. United Nations Relief and Works Agency (UNRWA), was filed last year in the federal Southern District Court of New York.

The families of around 100 victims of the October 7, 2023, Hamas-led terror assault claimed $1 billion in damages from UNRWA, asserting that the UN agency aided and abetted the terror group’s attack.

In April, the Department of Justice sent a letter to the judge, stating that UNRWA had played a significant role in “heinous offenses” by Hamas on October 7, and that “UNRWA is not immune from this litigation.”

That went against the position of the Department of Justice under the Biden administration, which had said that UNRWA had immunity in US courts.

Related: UN says 9 UNRWA employees ‘may have been involved’ in Oct 7 attack, have been fired

The judge in the case — US District Judge Analisa Torres — dismissed the case, despite the Department of Justice’s position.

“Because UNRWA is a subsidiary organ of the United Nations and has not waived its immunity,” Torres wrote, “this court lacks subject matter jurisdiction over Plaintiffs’ claims. Defendants’ motion to dismiss is granted, and the complaint dismissed.”

A lawyer for the plaintiffs, Gavriel Mairone, said the judge “totally misinterpreted the most important argument that we made.”

“We’re definitely appealing and we think, respectfully, that the judge’s opinion is erroneous,” he said.