The Shurat Hadin group says Facebook violates the US Anti-Terrorism Act by allowing militant groups such as Hamas a platform for spreading violence.
Hamas called the lawsuit an Israeli attempt to blackmail Facebook.
The victims cited in the case are all American, including Taylor Force, 28, who was stabbed to death while visiting Israel in March.
The others are dual Israeli-US nationals who died in attacks in Tel Aviv, Jerusalem and the occupied West Bank between 2014 and 2016.
