New York judge rules on controversial insurance lawsuit concerning 9/11

Insurance NewsEarlier in the year, a federal judge in New York reinstated an insurance case concerning the 9/11 terrorist attacks. The lawsuit originated shortly after September 11, 2001, and was backed by victims of the attacks and the families of those that had lost their lives. Several insurance companies also threw their support behind the lawsuit, which quickly raised the price of the suit to $100 billion. Federal Judge George Daniels of Manhattan levied an official ruling on the case last week, finding in favor of the prosecuting party. The target of the suit is Iran, terrorist groups Taliban and al-Qaida, as well as several prominent political figures in the Middle East, all of whom are now liable to pay for damages caused by the attacks.

Based upon the evidence, Judge Daniels determined that while those directly responsible for the attacks cannot be held responsible, as they are deceased, the organizations and people supporting the event can be targeted by insurers. Testimony from former members of the 9/11 Commission and three Iranian defectors suggested that Iran continues to support the groups behind the attacks and may be liable for the brunt of the $100 billion lawsuit.

While the ruling allows insurers to pursue the full amount of the money, insurance officials admit that it would be nearly impossible to recover funds from groups like the Taliban and al-Qaida. Saudi Arabia had been removed from the lawsuit, but lawyers for the plaintiffs had worked to reinstate the region. Insurers may attempt to recover money from Saudi Arabia, as it may also be impossible to get funds from Iran.