U.S. top court will not revive verdict against Palestinian Authority, PLO

FILE PHOTO: Police officers stand in front of the U.S. Supreme Court in Washington, DC, U.S., January 19, 2018. REUTERS/Eric Thayer/File Photo

By Lawrence Hurley

WASHINGTON (Reuters) – The Palestinian Authority and Palestine Liberation Organization gained a legal victory at the U.S. Supreme Court on Monday as the justices refused to consider reinstating a $655.5 million jury award won against them by 11 American families over militant attacks in Israel.

The court declined to hear the families’ appeal of a lower court’s 2016 ruling throwing out the jury award secured in a lawsuit brought under the Anti-Terrorism Act, a law that lets American victims of international terrorism seek damages in U.S. courts.

The families had looked to hold the Palestinian Authority and PLO liable for six shootings and bombings between 2002 and 2004 in the Jerusalem area that killed 33 people, including several Americans, and wounded more than 450.

“It’s outrageous that the murderous Palestinian Authority is allowed to kill innocent civilians and not have to pay any cost. This is a horrible travesty of justice for the families and we will not let it stand,” said Nitsana Darshan-Leitner, president of the Shurat HaDin-Israel Law Center, which represents the American families.

Gassan Baloul, a lawyer for the Palestinian defendants, said he was “gratified” that the Supreme Court refused to hear the case. The ruling by the New York-based 2nd U.S. Circuit Court that the high court left in place “respects the constitutional limits on the jurisdiction of U.S. courts,” Baloul added.

President Donald Trump’s administration had sided with the Palestinian Authority and PLO in the dispute, urging the justices not to take up the case because the specific claims could not be brought under the Anti-Terrorism Act.

“The United States condemns acts of terror in the strongest terms and the Department of Justice is committed to prosecuting those who commit terrorist attacks against innocent human beings to the fullest extent that the law allows,” U.S. Justice Department spokeswoman Kerri Kupec said.

“We will continue to support wherever possible all lawful actions to fight terrorism and provide redress to the victims of terrorist attacks and their families,” Kupec added.

The attacks at the center of the lawsuit have been attributed to the al-Aqsa Martyrs Brigades and Hamas. Lead plaintiff Mark Sokolow, his wife and their two daughters were injured in a 2002 suicide bombing in Jerusalem.

JURISDICTION QUESTION

The 2nd Circuit ordered that the civil lawsuit, which began in January 2004, be dismissed. The appeals court said the attacks occurred “entirely outside” U.S. territory, and found no evidence that Americans were targeted. As a result, American courts do not have jurisdiction to hear the claims, it said.

The families said late PLO Chairman Yasser Arafat, who died in 2004, and his agents routinely arranged for payments to attackers and to families of militants who died. The Palestinian Authority and PLO have said they condemned the attacks and blamed them on rogue individuals within the organizations acting on their own.

In 2015, after a six-week trial, a federal jury in Manhattan awarded the families $218.5 million, which was tripled automatically to $655.5 million under the Anti-Terrorism Act.

Lawyers for the plaintiffs said the appeals court decision “eviscerates the Anti-Terrorism Act” by severely limiting what cases can be heard in U.S. courts. They argued that Congress wrote the law specifically to apply to attacks that took place outside the United States in which U.S. citizens were injured or killed, whether or not Americans were specifically targeted.

In a separate case on a similar theme, the Supreme Court in February blocked a group of Americans injured in a 1997 suicide bombing in Jerusalem from seizing ancient Persian artifacts from a Chicago museum to satisfy a $71.5 million court judgment against Iran, which they had accused of complicity in the attack.

The Supreme Court in another case is weighing whether Jordan-based Arab Bank Plc can be sued over legal claims that it helped finance militant attacks in Israel and the Palestinian territories. A ruling is due by the end of June.

(Reporting by Lawrence Hurley; Additional reporting by Maayan Lubell in Jerusalem; Editing by Will Dunham)

Saudi-led air strike kills 12 civilians, including seven children: medics

Morgue workers sort plastic bags containing bodies of an airstrike victims in Hodeida, Yemen April 2, 2018. REUTERS/Abduljabbar Zeyad

HODEIDAH, Yemen (Reuters) – An air strike by the Saudi-led coalition fighting in Yemen killed 12 civilians including seven children in the coastal city of Hodeidah on Monday, medics and a witness said.

Medics and a civilian who saw the wreckage said the air strike had destroyed a house in the al-Hali district, where displaced civilians from other provinces were settled.

The 12 victims were all from the same family, they said.

A spokesman for the Saudi-led coalition told Reuters: “We take this report very seriously and it will be fully investigated as all reports of this nature are – using an internationally approved, independent process. Whilst this is ongoing, it would be inappropriate to comment further.”

Hodeidah is home to the impoverished country’s biggest port from where most of the humanitarian aid reaches millions of civilians on the brink of famine. The operation of port, controlled by the Iran-aligned Houthis, was not affected by the air strike.

Saudi Arabia and the United Arab Emirates intervened in a civil war in Yemen in 2015 against the Houthis to restore the internationally recognised government of President Abd-Rabbu Mansour Hadi.

The alliance, which includes other Sunni Muslim states, has conducted thousands of air strikes targeting Houthi fighters and has often hit civilian areas, although it denies ever doing so intentionally.

The war has killed more than 10,000 people, displaced more than 2 million and driven the country – already the poorest on the Arabian Peninsula – to the verge of famine.

Last week the Houthis launched a flurry of missiles which Saudi Arabia said it had intercepted over Riyadh. Debris from the missiles fell on a home, killing one person.

Rights watchdog Human Rights Watch on Monday said the Houthi attack had violated the laws of war by indiscriminately targeting populated areas.

“The Houthis should immediately stop their indiscriminate missile attacks on populated areas of Saudi Arabia,” said Middle East director Sarah Leah Whitson.

“But just as unlawful coalition airstrikes don’t justify the Houthis’ indiscriminate attacks, the Saudis can’t use Houthi rockets to justify impeding life-saving goods for Yemen’s civilian population.”

When the Houthis fired missiles at Riyadh last November, the coalition responded by shutting Yemen’s airports and ports. The United Nations said that blockade raised the danger of mass starvation, and it was partially lifted.

(Reporting by Dubai newsroom; Editing by Alison Williams and Hugh Lawson)

Oklahoma, Kentucky teachers walk off job over pay, shut schools

By Lenzy Krehbiel-Burton

OKLAHOMA CITY (Reuters) – Oklahoma teachers walked off the job on Monday, closing schools statewide, as they became the latest U.S. educators to demand pay raises and more funding for a school system reeling from a decade of budget cuts.

The strike by some of the lowest-paid educators in the nation came the same day that Kentucky teachers dressed in red T-shirts flooded that state’s capital demanding pension security, following a similar successful wage-strike about a month ago by teachers in West Virginia.

Teachers say years of budget austerity in many states have led to the stagnation of already poor salaries.

In Oklahoma City, a band of teachers played “We’re Not Gonna Take It,” as buses of educators from across the state arrived at the Capitol. Protesters carried signs reading: “How can you put students first if you put teachers last?” ahead of a rally expected to draw thousands.

“I am disgusted with the cuts, and deeper and deeper cuts,” said Betty Gerber, a retired teacher from Broken Arrow, Oklahoma.

Oklahoma’s Republican-controlled legislature last week approved the state’s first major tax increase in a quarter century to help fund pay raises for teachers, hoping to avert a strike with a $450 million revenue package.

The funding would raise by $5,000 the pay of teachers beginning their career, and provide a raise of nearly $8,000 for those with 25 years’ experience, lawmakers said.

The increase fell short of the demand from the largest teachers’ union in the state, the Oklahoma Education Association, for a $10,000 pay increase over three years for teachers and a $5,000 raise for support personnel.

According to National Education Association estimates for 2016, Oklahoma ranked 48th, followed by Mississippi at 49 and South Dakota at 50, in terms of average U.S. classroom teacher salary.

Oklahoma secondary school teachers had an annual mean wage of $42,460 as of May 2016, according to the U.S. Bureau of Labor Statistics. The minimum salary for a first year teacher was $31,600, state data showed.

The mean wage for teachers in every neighboring state is higher, causing many experienced teachers to leave Oklahoma, where some budget-strained districts have been forced to implement four-day school weeks.

On a state level, the inflation-adjusted general funding per student in Oklahoma dropped by 28.2 percent between 2008 and 2018, the biggest cut of any state, according to the nonpartisan Center on Budget and Policy Priorities.

(Reporting by Lenzy Krehbiel-Burton in Oklahoma City and Jon Herskovitz in Austin, Texas; Additional reporting by Bernie Woodall in Fort Lauderdale; Writing by Jon Herskovitz; Editing by Scott Malone and Susan Thomas)

Four dead, one missing as tropical cyclone causes floods in Fiji

FILE PHOTO - A view of floodwater from Tropical Cyclone Josie in Nailaga Village, Ba, Fiji March 31, 2018 in this image obtained from social media. Picture taken March 31, 2018. Naziah Ali via REUTERS

By Alison Bevege

SYDNEY (Reuters) – Floods caused by a tropical cyclone that brought torrential weekend rains to the Pacific island nation of Fiji have killed four people, with another presumed drowned, a disaster management official said on Monday.

Tropical Cyclone Josie, a category-one storm, caused severe flooding, with the northwestern town of Ba on Fiji’s largest island, Viti Levu, said to be the worst hit.

FILE PHOTO - A man collects water, after flooding from Tropical Cyclone Josie in Ba, Fiji April 1, 2018 in this image obtained from social media. Naziah Ali via REUTERS

FILE PHOTO – A man collects water, after flooding from Tropical Cyclone Josie in Ba, Fiji April 1, 2018 in this image obtained from social media. Naziah Ali via REUTERS

Four bodies had been retrieved and authorities do not expect that the missing person survived, said Anare Leweniqila, the director of the Fiji National Disaster Management Office.

“The death toll will go to five when we find their body,” he told Reuters by telephone.

He said 1,873 people sheltering in 35 evacuation centers would not be able to return home until mosquito spraying was completed.

“In two to three days people can go home after the clean-up and the vector spraying for diseases in the worst affected areas,” Leweniqila added.

The Fiji Meteorological Service warned of heavy rain expected on Monday afternoon in Fiji and surrounding islands, as Tropical Cyclone Josie moved away in a south-southeast direction.

Leweniqila said the authorities did not envisage any more flooding as the water level was receding even after heavy rain, but that road damage had been extensive.

Up to 74 roads were closed due to flooding.

In February, Fiji escaped without deaths or widespread damage when Gita, a category 4 tropical cyclone, lashed the country with winds of up to 275 km per hour (171 mph).

(Reporting by Alison Bevege; Editing by Clarence Fernandez)

Israeli troops wound dozens on Gaza border as Palestinians bury dead from earlier violence

A Palestinian hurls stones at Israeli troops during clashes at the Gaza-Israel border at a protest demanding the right to return to their homeland, in the southern Gaza Strip March 31, 2018. REUTERS/Ibraheem Abu Mustafa

GAZA (Reuters) – Israeli troops shot and wounded about 70 Palestinians among crowds demonstrating at the Gaza-Israel border on Saturday, health officials said, after one of the deadliest days of unrest in the area in years.

Thousands of people marched through the streets of Gaza in funerals for the 15 people killed by Israeli gunfire on Friday, and a national day of mourning was observed in the enclave and in the occupied West Bank.

Palestinian President Mahmoud Abbas said Israel was responsible for the violence. Israeli Prime Minister Benjamin Netanyahu said Israel was protecting its sovereignty and citizens.

An Israeli military spokesman said he was checking the details of Saturday’s unrest. It broke out when Palestinians gathered on the border between the Hamas-run enclave and Israel then began throwing stones. Palestinian health officials said about 70 were wounded.

A Palestinian hurls stones at Israeli troops during clashes at the Gaza-Israel border at a protest demanding the right to return to their homeland, in the southern Gaza Strip March 31, 2018. REUTERS/Ibraheem Abu Mustafa

A Palestinian hurls stones at Israeli troops during clashes at the Gaza-Israel border at a protest demanding the right to return to their homeland, in the southern Gaza Strip March 31, 2018. REUTERS/Ibraheem Abu Mustafa

On Friday at least 15 Palestinians were killed by Israeli security forces confronting protesters. The military said some had shot at them, rolled burning tyres and hurled rocks and fire bombs toward troops across the border.

Hamas said five of them were members of its armed wing. Israel said eight of the 15 dead belonged to Hamas, designated a terrorist group by Israel and the West, and two others belonged to other militant groups.

Tens of thousands of Palestinians had gathered on Friday along the fenced 65-km (40-mile) frontier, where tents had been erected for a planned six-week protest pressing for a right of return for refugees and their descendents to what is now Israel.

But hundreds of Palestinian youths ignored calls from the organizers and the Israeli military to stay away from the frontier and violence broke out.

The protest, organized by Hamas and other Palestinian factions, is scheduled to culminate on May 15, the day Palestinians commemorate what they call the “Nakba” or “Catastrophe” when hundreds of thousands fled or were driven out of their homes in 1948, when the state of Israel was created.

Israel has long ruled out any right of return, fearing an influx of Arabs that would wipe out its Jewish majority. It says refugees should resettle in a future state the Palestinians seek in the Israeli-occupied West Bank and Gaza. Peace talks to that end have been frozen since 2014.

Israel withdrew its troops and settlers from Gaza in 2005 but still maintains tight control of its land and sea borders.

Egypt also keeps its border with Gaza largely closed.

Abbas’s spokesman, Nabil Abu Rdainah, said: “The message of the Palestinian people is clear. The Palestinian land will always belong to its legitimate owners and the occupation will be removed.”

A Palestinian is evacuated during clashes with Israeli troops at the Gaza-Israel border at a protest demanding the right to return to their homeland, in the southern Gaza Strip March 31, 2018. REUTERS/Ibraheem Abu Mustafa

A Palestinian is evacuated during clashes with Israeli troops at the Gaza-Israel border at a protest demanding the right to return to their homeland, in the southern Gaza Strip March 31, 2018. REUTERS/Ibraheem Abu Mustafa

Israeli military spokesman Brigadier-General Ronen Manelis said Hamas was using the protests as a guise to launch attacks against Israel and ignite the area. He said violence was likely to continue along the border until May 15.

“We won’t let this turn into a ping-pong zone where they perpetrate a terrorist act and we respond with pinpoint action. If this continues we will not have no choice but to respond inside the Gaza Strip,” Manelis told reporters.

United Nations Secretary-General Antonio Guterres has called for an independent investigation into Friday’s bloodshed, and appealed for all sides to refrain from any actions that could lead to further casualties or put civilians in harm’s way.

(Reporting by Nidal al-Mughrabi and Maayan Lubell, Editing by Angus MacSwan)

‘Affluenza’ Texan, who killed 4 driving drunk, released from jail

FILE PHOTO: Ethan Couch, the so-called "affluenza" teen, is brought into court for his adult court hearing at Tim Curry Justice Center in Fort Worth, Texas April 13, 2016. Fort Worth Star-Telegram/Max Faulkner/Pool via REUTERS

By Marice Richter

FORT WORTH, Texas (Reuters) – A Texan who was dubbed the “affluenza teen” was released from jail on Monday after serving nearly two years for killing four people while driving drunk and later fleeing to Mexico with his mother, law enforcement officials said.

The case made headlines worldwide after lawyers for Ethan Couch, now 20, argued that his wealthy upbringing impaired his ability to tell right from wrong. He has moved from the Tarrant County Jail and was being processed at a probation office, jail officials said.

Couch was released a few days before his 21st birthday and will remain under strict probation supervision, the county sheriff’s office has said.

It was not clear where Couch will go upon his release. His mother is in jail for violating the terms of her bond after being charged with helping her son flee to Mexico.

“Ethan does not wish to draw attention to himself and requests privacy so he may focus on successfully completing his community supervision and going forward as a law-abiding citizen,” his lawyers, Scott Brown and Reagan Wynn said in a statement.

Couch’s father, who runs a sheet metal business, did not respond to requests for comment.

Couch was 16 and had a blood alcohol level three times the legal limit for an adult when he struck and killed four people in June 2013 with his pickup truck.

At his trial in juvenile court that year, a psychologist testifying on his behalf described Couch as suffering from “affluenza.” The psychologist said it was an affliction brought on by being spoiled by his parents and it had skewed his moral compass.

Couch was sentenced to 10 years of probation for intoxication manslaughter, sparking outrage from critics who ridiculed the affluenza defense and said his family’s wealth had kept him out of jail.

But in late 2015, when a social media video surfaced that showed him in possible violation of his drug-and-drink-free probation, he and his mother, Tonya Couch, fled for Mexico, where the two were later apprehended and deported.

In 2016, a Tarrant County judge transferred Ethan Couch’s probation supervision to the adult system, and as a condition of the transfer, ordered him to serve 720 days in jail, 180 days for each of his four victims.

That sentence was seen as the maximum possible, given the various legal mechanisms of a case that spanned the juvenile and adult systems, legal officials said.

(Reporting by Marice Richter and Jon Herskovitz; Editing by Steve Orlofsky, David Gregorio and Susan Thomas)

Israel says to send 16,000 African migrants to Western countries

Israeli Prime Minister Benjamin Netanyahu speaks during a news conference at the Prime Minister's office in Jerusalem April 2, 2018. REUTERS/Ronen Zvulun

By Maayan Lubell

JERUSALEM (Reuters) – Israel said on Monday it has scrapped a plan to deport African migrants to Africa and reached an agreement with the U.N. refugee agency to send more than 16,000 to Western countries instead.

Prime Minister Benjamin Netanyahu named Canada, Italy and Germany as some of the nations that will take in the migrants.

Other migrants, many of whom are seeking asylum, will be allowed to remain in Israel, which they entered illegally on foot through the border with Egypt, for at least the next five years.

The fate of some 37,000 Africans in Israel has posed a moral dilemma for a state founded as a haven for Jews from persecution and a national home. The right-wing government has been under pressure from its nationalist voter base to expel the migrants.

But the planned mass deportation led to legal challenges in Israel, drew criticism from the United Nations and rights groups and triggered an emotional public debate among Israelis.

In February, Israeli authorities started handing out notices to 20,000 male African migrants giving them two months to leave for a third country in Africa or risk being put in jail indefinitely.

Teklit Michael, who came to Israel from Eritrea a decade ago, said he was delighted by the new deal.

“I saw in the past few years a lot of people lose their hopes because of that deportation to an unsafe place,” said Michael, 29.

MONEY AND AN AIR TICKET

The Israeli government has offered migrants, most of them from Sudan and Eritrea, $3,500 and a plane ticket to what it says is a safe destination. At immigration hearings, migrants were told they could choose to go to Rwanda or Uganda.

But rights groups advocating on their behalf say that many fled abuse and war and that their expulsion, even to a different country in Africa, would endanger them further.

The groups had challenged the deportation plan in Israel’s High Court, which on March 15 issued a temporary order that froze its implementation.

Netanyahu said the U.N. High Commissioner for Refugees had agreed to organize and fund the new plan that would take five years to implement.

“The joint commitment is that ‘You take out 16,250 and we will leave 16,250 as temporary residents’. That enables the departure of a very large number of people, 6,000 in the first 18 months,” Netanyahu said at a news conference in Jerusalem.

A UNHCR spokeswoman in Tel Aviv confirmed that an agreement had been reached but gave no details.

The U.N.’s refugee agency had urged Israel to reconsider its original plan, saying migrants who have relocated to sub-Saharan Africa in the past few years were unsafe and ended up on the perilous migrant trail to Europe, some suffering abuse, torture and even dying on the way.

The largest community of African migrants, about 15,000, lives in south Tel Aviv, in a poor neighborhood where shops are dotted with signs in Tigrinya and other African languages and abandoned warehouses have been converted into churches for the largely Christian Eritreans.

(Additional reporting by Jeffrey Heller; Editing by Hugh Lawson)

Kremlin says Trump suggested Putin visit the White House

U.S. President Donald Trump and Russia's President Vladimir Putin talk during the family photo session at the APEC Summit in Danang, Vietnam November 11, 2017. REUTERS/Jorge Silva

MOSCOW (Reuters) – A Kremlin aide said on Monday that U.S. President Donald Trump suggested the White House as the venue for a summit with Russia’s Vladimir Putin when they discussed the idea of meeting in a telephone call last month.

Since that call, on March 20, preparations for a possible summit have not progressed because of a diplomatic row, the aide, Yuri Ushakov, said.

“When our presidents spoke on the phone, Trump proposed having the first meeting in Washington, in the White House,” Ushakov told reporters at a briefing.

“Trump called Putin last month to congratulate him on his election victory and told reporters he believed he and Putin would meet “in the not too distant future.”

White House press secretary Sarah Sanders did not confirm an invitation had been issued to Putin, but said the two had discussed a number of venues for a potential meeting, including the White House.

“We have nothing further to add at this time,” she told reporters on Monday.

Rolling out a welcome for Putin in the White House, rather than at a neutral location, could anger Trump’s domestic critics, who accuse Russia of hostile acts against Western countries, including the United States.

Some current and former members of Trump’s team are under investigation for alleged collusion with Russia in the run-up to Trump’s inauguration. Trump denies any collusion.

Since the March 20 phone call, Washington expelled 60 Russian diplomats and closed a Russian consulate over allegations that Russia was behind the poisoning of former Russian spy and his daughter in Britain.

Russia denies involvement and has retaliated against the diplomatic sanctions in kind.

“Against the backdrop of these events, it’s difficult to discuss the possibility of holding a summit”, Ushakov said.

“We want to believe that the discussions (on a proposed summit) will begin,” Ushakov said.

“We want to hope that… one day, at one time or another we can arrive at the start of a serious and constructive dialogue.”

(Reporting and writing by Denis Pinchuk; Additional reporting by Jeff Mason in Washington; Editing by Christian Lowe and Robin Pomeroy)

Saks, Lord & Taylor hit by payment card data breach

The Lord & Taylor flagship store building is seen along Fifth Avenue in the Manhattan borough of New York City, U.S., October 24, 2017. REUTERS/Shannon Stapleton

By Jim Finkle and David Henry

TORONTO/NEW YORK (Reuters) – Retailer Hudson’s Bay Co on Sunday disclosed that it was the victim of a security breach that compromised data on payment cards used at Saks and Lord & Taylor stores in North America.

One cyber security firm said that it has evidence that millions of cards may have been compromised, which would make the breach one of the largest involving payment cards over the past year, but added that it was too soon to confirm whether that was the case.

Toronto-based Hudson’s Bay said in a statement that it had “taken steps to contain” the breach but did not say it had succeeded in confirming that its network was secure. It also did not say when the breach had begun or how many payment card numbers were taken.

“Once we have more clarity around the facts, we will notify our customers quickly and will offer those impacted free identity protection services, including credit and web monitoring,” the statement said.

A company spokeswoman declined to elaborate.

The breach comes as Hudson’s Bay struggles to improve its financial performance as a tough retail environment has weighed on sales and margins. Last June, it launched a transformation plan to cut costs and is working to monetize the value of its substantial real estate holdings.

Hudson’s Bay disclosed the incident after New York-based cyber security firm Gemini Advisory reported on its blog that Saks and Lord & Taylor had been hacked by a well-known criminal group known as JokerStash.

JokerStash, which sells stolen data on the criminal underground, on Wednesday said that it planned to release more than 5 million stolen credit cards, according to Gemini Chief Technology Officer Dmitry Chorine.

The hacking group has so far released about 125,000 payment cards, about 75 percent of which appear to have been taken from the Hudson’s Bay units, Chorine told Reuters by telephone.

The bulk of the 5 million card numbers that JokerStash said it plans to release are likely from Saks and Lord & Taylor, but it is too early to say for sure, Chorine said.

“It’s hard to assess at the moment, primarily because hackers have not released the entire cards in one batch,” he told Reuters.

Alex Holden, chief information security officer with cyber security firm Hold Security, confirmed that the 125,000 cards had been released by JokerStash but said it was too soon to estimate how many had been taken from Hudson’s Bay.

If in fact millions of records were stolen, the breach would be one of the largest involving payment cards in the past year, but it would still be far smaller than any of the biggest thefts on record, which occurred a decade ago.

Hackers stole more than 130 million credit cards from credit-card processor Heartland Payment Systems, convenience store operator 7-Eleven Inc and grocer Hannaford Brothers Co, from 2006 to 2008, according to U.S. federal investigators.

Cyber criminals stole some 40 million payment cards in a 2013 hack on Target Corp and 56 million from Home Depot Inc in 2014.

Hudson’s Bay said there is no indication its recent breach involved online sales at Saks and Lord &Taylor outlets or its Hudson’s Bay, Home Outfitters and HBC Europe units.

The company said that customers will not be liable for fraudulent charges resulting from the breach.

(Reporting by Jim Finkle in Toronto and David Henry in New York; Editing by Bill Rigby and Steve Orlofsky)

With paper and phones, Atlanta struggles to recover from cyber attack

By Laila Kearney

ATLANTA (Reuters) – Atlanta’s top officials holed up in their offices on Saturday as they worked to restore critical systems knocked out by a nine-day-old cyber attack that plunged the Southeastern U.S. metropolis into technological chaos and forced some city workers to revert to paper.

On an Easter and Passover holiday weekend, city officials labored in preparation for the workweek to come.

Police and other public servants have spent the past week trying to piece together their digital work lives, recreating audit spreadsheets and conducting business on mobile phones in response to one of the most devastating “ransomware” virus attacks to hit an American city.

Three city council staffers have been sharing a single clunky personal laptop brought in after cyber extortionists attacked Atlanta’s computer network with a virus that scrambled data and still prevents access to critical systems.

“It’s extraordinarily frustrating,” said Councilman Howard Shook, whose office lost 16 years of digital records.

One compromised city computer seen by Reuters showed multiple corrupted documents with “weapologize” and “imsorry” added to file names.

Ransomware attacks have surged in recent years as cyber extortionists moved from attacking individual computers to large organizations, including businesses, healthcare organizations and government agencies. Previous high-profile attacks have shut down factories, prompted hospitals to turn away patients and forced local emergency dispatch systems to move to manual operations.

Ransomware typically corrupts data and does not steal it. The city of Atlanta has said it does not believe private residents’ information is in the hands of hackers, but they do not know for sure.

City officials have declined to discuss the extent of damage beyond disclosed outages that have shut down some services at municipal offices, including courts and the water department.

Nearly 6 million people live in the Atlanta metropolitan area. The Georgia city itself is home to more than 450,000 people, according to the latest data from the U.S. Census Bureau.

City officials told Reuters that police files and financial documents were rendered inaccessible by unknown hackers who demanded $51,000 worth of bitcoin to provide digital keys to unlock scrambled files.

“Everything on my hard drive is gone,” City Auditor Amanda Noble said in her office housed in Atlanta City Hall’s ornate tower.

City officials have not disclosed the extent to which servers for backing up information on PCs were corrupted or what kind of information they think is unrecoverable without paying the ransom.

Noble discovered the disarray on March 22 when she turned on her computer to discover that files could not be opened after being encrypted by a powerful computer virus known as SamSam that renamed them with gibberish.

“I said, ‘This is wrong,'” she recalled.

City officials then quickly entered her office and told her to shut down the computer before warning the rest of the building.

Noble is working on a personal laptop and using her smartphone to search for details of current projects mentioned in emails stored on that device.

Not all computers were compromised. Ten of 18 machines in the auditing office were not affected, Noble said.

OLD-SCHOOL ANALOG

Atlanta police returned to taking written case notes and have lost access to some investigative databases, department spokesman Carlos Campos told Reuters. He declined to discuss the contents of the affected files.

“Our data management teams are working diligently to restore normal operations and functionalities to these systems and hope to be back online in the very near future,” he said. By the weekend, he added, officers were returning to digital police reports.

Meanwhile, some city employees complained they have been left in the dark, unsure when it is safe to turn on their computers.

“We don’t know anything,” said one frustrated employee as she left for a lunch break on Friday.

FEEBLE

Like City Hall, whose 1930 neo-Gothic structure is attached to a massive modern wing, the city’s computer system is a combination of old and new.

“One of the reasons why municipalities are vulnerable is we just have so many different systems,” Noble said.

The city published results from a recent cyber-security audit in January, and had started implementing its recommendations before the ransomware virus hit. The audit called for better record-keeping and hiring more technology workers.

Councilman Shook said he is worried about how much the recovery will cost the city, but that he supports funding a cyber-security overhaul to counter future attacks.

For now his staff are temporarily sharing one aging laptop.

“Things are very slow,” he said. “It was a very surreal experience to be shut down like that.”

Mayor Keisha Lance Bottoms, who took office in January, has declined to say if the city paid the ransom ahead of a March 28 deadline mentioned in an extortion note whose image was released by a local television station.

Shook, who chairs the city council’s finance subcommittee, said he did not know whether the city is negotiating with the hackers, but that it appears no ransom has been paid to date.

The Federal Bureau of Investigation, which is helping Atlanta respond, typically discourages ransomware victims from paying up.

FBI officials could not immediately be reached for comment. A Department of Homeland Security spokesman confirmed the agency is helping Atlanta respond to the attack, but declined to comment further.

Hackers typically walk away when ransoms are not paid, said Mark Weatherford, a former senior DHS cyber official.

Weatherford, who previously served as California’s chief information security officer, said the situation might have been resolved with little pain if the city had quickly made that payment.

“The longer it goes, the worse it gets,” he said. “This could turn out to be really bad if they never get their data back.”

(Reporting by Laila Kearney; additional reporting by Jim Finkle; editing by Daniel Bases and Jonathan Oatis)