A long-standing legal battle over compensation for victims of terrorism has once again come into focus amid new claims linked to recent attacks in Israel. The case centers on a 2003 U.S. court ruling that found Iran liable for orchestrating and funding attacks against American citizens. Families of victims have been awarded hundreds of millions of dollars, but collecting these damages has proven difficult.

The legal action originated after evidence showed Iran’s involvement in financing terrorism that resulted in significant death and injury. In 2005, 29 plaintiffs received a combined award surpassing $126 million, which, after final adjustments in 2006, totaled nearly $317 million in compensatory damages. Among the awards was a $30 million judgment for the estate of Albert Votaw, a victim of an Iranian-backed attack.

Despite the substantial ruling, those entitled to compensation remain largely unpaid. Cathy, a plaintiff in the case, expressed skepticism about ever receiving more than a fraction of the awarded amount, estimating a less than 10 percent chance of collection. She criticized U.S. government efforts that risk undermining the mechanisms designed to enforce these judgments, particularly in light of attempted diplomatic overtures toward Iran, including a failed 2015 Memorandum of Understanding which contemplated sanction relief in exchange for Iranian concessions.

Cathy and her legal counsel argue that victims should be prioritized for compensation before any financial benefits from sanctioned assets are released to Tehran. They point to precedent in Libya, which settled $1.5 billion for terrorism victims prior to being removed from the U.S. list of state sponsors of terrorism. They contend Iran has not taken similar steps, continuing to fund militant groups without accountability for past harm.

Meanwhile, new plaintiffs have emerged following the October 7, 2023, Hamas-led attacks in southern Israel that left over 1,200 people dead, including more than 800 civilians, and saw 251 individuals abducted. Among these are American citizens who suffered trauma or loss as a result of the violence. One such family, identified only as E. and A., is pursuing legal action against Iran over the harm suffered by their daughter, T., who survived the attack at the Supernova music festival—a target of the militants.

T.’s ordeal was harrowing: after receiving a distressing call to her parents about indiscriminate gunfire and lifeless bodies nearby, she endured nearly 11 hours hiding and fleeing while witnessing the deaths and assaults of friends. The psychological toll has been severe. T. is reported to suffer from debilitating depression, survivor’s guilt, and post-traumatic stress disorder (PTSD). Her parents describe her as emotionally withdrawn, resistant to seeking help, and unsure if she will ever resume a normal life.

Financially and emotionally strained, T.’s family has dedicated significant resources to her care, including frequent travel between the United States and Israel where support services are available. They stress that many families in similar situations lack comparable means and face crushing challenges as they navigate the aftermath of terrorism. The ongoing funding of militant groups by Iran compounds their frustration.

Legal advocates emphasize the crucial role of the U.S. government in ensuring victims receive compensation before any easing of sanctions or diplomatic engagements with Iran occur. They argue that accountability and justice for Americans harmed by terrorism must remain a priority.

For victims like T. and her family, the pursuit of legal remedies is intertwined with the struggle to rebuild lives marked by trauma and loss. While the future remains uncertain, the family and legal representatives continue to press for recognition and financial security afforded by the court’s judgments against Iran.