Collecting Court Awards from Iran is Nearly Impossible for Plaintiffs, Troublesome for Banks

By Colby Adams

Pending civil complaints and recently unsealed documents in a case against a Luxembourg-based financial institution show the difficulty in collecting a landmark monetary penalty assessed against Iran for sponsoring terror, say analysts. In September 2007, U.S. federal judge Royce Lamberth ordered Iran to pay $2.6 billion to relatives of the 241 victims killed and 26 survivors of the 1983 bombing of the U.S. Marine Corps barracks in Beirut. Despite a bevy of pending civil cases brought against banks and other entities to collect the funds, almost no Iranian-linked assets have been handed over to the nearly 1,000 plaintiffs, including the...