Insurers Try to Revive 9/11 Suit Against Saudis

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Insurers that paid out millions after the Sept. 11 terrorist attacks are trying to revive a lawsuit that accuses Saudi Arabia of funneling money to al-Qaida.

A U.S. appeals court in New York had ruled in 2008 that the Saudi royal family and other defendants enjoy immunity from such lawsuits.

Lawyer Stephen Cozen of Philadelphia argues, however, that the claims fall under an exception of the Foreign Sovereign Immunities Act that applies to certain damages, which other U.S. courts have since recognized.

Cozen recently filed a new lawsuit in Pennsylvania, where hijacked Flight 93 crashed. He said he believes the lawsuit stands a better chance in the federal circuit court.

His client, a Lloyd’s of London insurance syndicate, hopes to recoup $215 million paid out on policies covering airlines, security companies and airport authorities. The money went to families who opted out of the U.S. victims’ compensation fund, Cozen said.

The lawsuit alleges that the Kingdom of Saudi Arabia made charitable donations to Muslim groups that were then funneled to al-Qaida. The defendants include Prince Salman, the governor of Riyadh, the Saudi Joint Relief Commission and other charities, and Saudi banks and bank executives.

“We have no doubt that the facts that we have asserted are all easily proven, or we wouldn’t have asserted them in the first place,” Cozen said.

Fifteen of the 19 hijackers on Sept. 11 were Saudi citizens, the lawsuit notes.

Lawsuits seeking billions in damages were filed by representatives, survivors and relatives of the victims against foreign governments, charities, financial institutions and individuals believed to have provided support to al-Qaida.