US Agrees to $318M Settlement for Victims of Iran-Sponsored Terrorism After 17-Year Lawsuit

The U.S. Attorney's Office for the Southern District of New York announced that after a 17-year legal battle, the U.S. government has agreed to a final settlement under which approximately $318 million will be paid to hundreds of victims of terrorism supported by the Islamic Republic of Iran. According to U.S. officials, the case involved a 36-story building on Fifth Avenue in Manhattan, where Bank Melli Iran's hidden interests — concealed through shell companies — were uncovered during judicial proceedings. The U.S. attorney's office stated that these assets had been hidden for years, with their revenues transferred to Bank Melli Iran. Under the settlement, $129 million of the total amount was paid on March 20, 2026 (30 Esfand 1404), and the remaining $189 million, plus interest, will be paid over the next three years. The funds will be distributed to victims and families affected by various attacks, including the 1983 Beirut bombing, the September 11 attacks, and attacks carried out by Iranian proxy groups in Israel and other locations.