9/11 Families Win Final Judgments Against Iran After Waiving Punitive Damages in Decades-Long MDL

MANHATTAN (LN) — A federal judge in Manhattan entered final judgment April 28 against the Islamic Republic of Iran in favor of a group of September 11 families, awarding compensatory damages with prejudgment interest compounding at 4.96 percent annually from September 11, 2001, as part of the sprawling multidistrict litigation that has wound through the Southern District of New York for more than two decades.

The judgment, entered under Rule 54(b) of the Federal Rules of Civil Procedure, covers the Burnett-Munhall-Nilsen plaintiffs identified in the court's exhibits — families of James Munhall and Troy Nilsen, both killed in New York on September 11, 2001.

To obtain the final judgment, those plaintiffs waived punitive damages against Iran. The court's April 20, 2026 order provided the reasons for directing the clerk to enter judgment on their compensatory awards in exchange for that waiver.

The exhibits show solatium awards of $12,500,000 for each surviving spouse — Susan Munhall and Jennifer Nilsen — and $8,500,000 for each of three children: Scott Nilsen and Ryan Nilsen (children of Troy Nilsen) and Lauren Munhall (child of James Munhall). Separate estate pain-and-suffering awards of $2,000,000 were entered for each decedent, with trebled figures of $6,000,000 also reflected in the exhibits.

Prejudgment interest at 4.96 percent per annum, compounded annually, runs from September 11, 2001 through the date of final judgment — a span of more than 24 years that substantially enlarges the total sums owed.

The judgment is certified as final under Rule 54(b), meaning the families may move to enforce it without waiting for the broader MDL to conclude.

Burnett plaintiffs who do not appear in the current exhibits — those not previously awarded compensatory or punitive damages — retain the right to submit applications in later stages, and the court ordered that those future claims will be approved on the same basis as the awards entered April 28.

The case is part of In re Terrorist Attacks on September 11, 2001, docketed as 03 MDL 1570 in the Southern District of New York.