The U.S. Attorney’s Office for the Southern District of New York announced a $318 million settlement on Monday, compensating hundreds of victims of Iranian state-sponsored terrorism, concluding a 17-year legal battle.
The case centered on hidden Iranian government interests in 650 Fifth Avenue, a Manhattan office tower. The building was “originally constructed by a charitable foundation controlled by the former Shah of Iran, Mohammad Reza Pahlavi,” according to court records.
After the 1979 revolution, the Islamic Republic of Iran “took over control of the charitable foundation and created a partnership with Bank Melli Iran, an Iranian government-owned bank sanctioned by the U.S. government for its role in financing Iran’s weapons of mass destruction programs.”
The bank allegedly concealed its stake through front companies while continuing to receive income from the building in violation of U.S. sanctions. U.S. authorities first moved to seize those assets in 2008.
The settlement will distribute funds to victims and families affected by attacks including the 1984 Beirut bombings, the Sept. 11, 2001, attacks, and other assaults carried out by Iranian-backed groups targeting civilians.
Victims received an initial $129 million payment on Friday, March 20, with the remaining $189 million to be paid over three years with interest.
