US Appeals Court Overturns Iran Judgment

The 2nd U.S. Circuit Court of Appeals has overturned a $1.68 billion judgment against Iran's central bank, Bank Markazi, which was sought by families of victims from the 1983 Beirut bombing. In a unanimous decision, the court stated that a lower court failed to address state law questions before ruling against Bank Markazi and the Luxembourg-based Clearstream Banking. The appellate panel also dismissed claims that a 2019 federal law, intended to facilitate the seizure of Iranian assets, waived the bank's sovereign immunity. The case has now been sent back to U.S. District Judge Loretta Preska to assess whether it can proceed without Bank Markazi's presence. Plaintiffs are attempting to hold Iran liable for its alleged support of the attack that killed 241 U.S. service members, despite facing challenges in collecting judgments against foreign entities. Iran has consistently criticized U.S. actions targeting its assets, arguing that they breach international law.