United States Attorney for the Southern District of New York, Jay Clayton, announced on Mar. 23 that the United States has reached a settlement to pay approximately $318 million to hundreds of victims of Iranian state-sponsored terrorism after a 17-year forfeiture litigation.
The resolution is significant for many families and individuals who have waited years for compensation related to acts of terrorism attributed to the Iranian government. The settlement will provide financial relief to victims and their families from attacks including the 1984 bombings in Beirut, the September 11, 2001 terrorist attacks, and other incidents involving Iranian proxy groups.
The case began in 2008 when U.S. authorities filed a forfeiture action exposing an Iranian government-owned bank’s secret interest in a Manhattan skyscraper at 650 Fifth Avenue. After this action, numerous victims filed claims based on judgments against Iran for state-sponsored terror activities. Over nearly two decades, legal proceedings uncovered that Bank Melli Iran—sanctioned by the U.S. government—had concealed its interest in the building through front companies established both abroad and in New York.
Clayton said: “Iran has sponsored terrorism for decades. Since the inception of this litigation, the overriding goal of the Department of Justice has been to vindicate the rights of victims of the Government of Iran’s long-standing policy of supporting and promoting terror attacks across the world, including 9/11. This Office’s many years of determined litigation show our unrelenting commitment to victims’ rights, and has led to this significant recovery. For nearly two decades, we pursued hidden Iranian government assets tied to a Manhattan skyscraper to ensure those funds would ultimately compensate victims of Iran-sponsored terrorism rather than terrorists and their enablers.”
As part of recent developments in January 2025, all parties agreed on dismissing remaining claims in exchange for an initial payment completed on March 20 totaling $129 million—with another $189 million due over three years plus interest—and dissolving ownership partnerships linked with Bank Melli Iran’s interests. The building is being transferred into new hands following approvals from relevant regulatory agencies.
Clayton also praised federal investigators and agencies involved: “Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) and its New York Field Office Counterintelligence/Cyber Division; the FBI’s Joint Terrorism Task Force; the Internal Revenue Service, Criminal Investigation Division; and the New York City Police Department.” He thanked additional support from other justice departments as well.
