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Complete 911 Timeline

9/11 Related Lawsuits

Project: Complete 911 Timeline
Open-Content project managed by matt, Derek, Paul, KJF, mtuck, paxvector

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A property risk assessment report is prepared for Silverstein Properties before it acquires the lease for the World Trade Center (see July 24, 2001). It identifies the scenario of an aircraft hitting one of the WTC towers as one of the “maximum foreseeable losses.” The report says, “This scenario is within the realm of the possible, but highly unlikely.” Further details of the assessment, such as who prepared it, are unreported. (National Institute of Standards and Technology 5/2003, pp. 16 pdf file; Barrett and Collins 2006, pp. 189; Barrett and Collins 9/1/2006)

Larry Silverstein.
Larry Silverstein. [Source: Silverstein Properties publicity photo]Real estate development and investment firm Silverstein Properties and real estate investment trust Westfield America Inc. finalize a deal worth $3.2 billion to purchase a 99-year lease on the World Trade Center. The agreement covers the Twin Towers, World Trade Center Buildings 4 and 5 (two nine-story office buildings), and about 425,000 square feet of retail space. (Bagli 4/27/2001; Port Authority of New York and New Jersey 7/24/2001; IREIzine 7/26/2001) Westfield America Inc. will be responsible for the retail space, known as the Mall. Silverstein Properties’ lease will cover the roughly 10 million square feet of office space of the Twin Towers and Buildings 4 and 5. Silverstein Properties already owns Building 7 of the WTC, which it built in 1987. This is the only time the WTC has ever changed hands since it was opened in 1973. (International Council of Shopping Centers 4/27/2001; Westfield Group 7/24/2001; Daily Telegraph 9/11/2001; Glanz 11/29/2001; CNN 8/31/2002) It was previously controlled by the New York Port Authority, a bi-state government agency. (Malanga 5/12/2007) Silverstein and Westfield are given the right to rebuild the structures if they are destroyed. (Goldberger 5/20/2002)
Silverstein Properties Not the Highest Bidder - Silverstein Properties’ bid for the WTC, at $3.22 billion, was the second highest after Vornado Realty Trust’s, at $3.25 billion. Silverstein Properties won the contract only after protracted negotiations between the Port Authority and Vornado Realty Trust failed. The privatization of the WTC has been overseen by Lewis M. Eisenberg, the chairman of the Port Authority. Eisenberg, a financier, is involved in Republican politics. (Bagli 3/17/2001; Kessler 8/20/2004)
Banks Provide Most Money for Deal - Larry Silverstein, the president of Silverstein Properties, only uses $14 million of his own money for the deal. His partners, who include real estate investors Lloyd Goldman and Joseph Cayre, put up a further $111 million, and banks provide $563 million in loans. (Brill 2003, pp. 156; Bagli 11/22/2003; Seemuth 2/2005; Frangos and Grant 9/11/2008)
Silverstein's Lenders Want More Insurance - The Port Authority had carried only $1.5 billion in insurance coverage on all its buildings, including the WTC, but Silverstein’s lenders insist on more, eventually demanding $3.55 billion in cover. (Frankel 9/3/2002) After 9/11, Larry Silverstein will claim the attacks on the World Trade Center constituted two separate events, thereby entitling him to a double payout totaling over $7 billion. (English 10/9/2001; Vuillamy 8/18/2002) Eventually, after several years of legal wrangling, a total of $4.55 billion of insurance money will be paid out for the destruction of the WTC (see May 23, 2007). Most of this appears to go to Silverstein Properties. How much goes to Westfield America Inc. is unclear. (Topousis 5/24/2007)

Alan Reiss.Alan Reiss. [Source: Eric Weeks]In the first week of September 2001, the real estate development and investment firm Silverstein Properties assumes control of the World Trade Center. The company had acquired the lease to operate the Twin Towers from the New York Port Authority in late July (see July 24, 2001). It has already begun managing the facility with its own executives. Selected Port Authority employees, including Alan Reiss, the director of the World Trade Center, have been assisting the firm during a three-month transition period. But in the weeks prior to 9/11, according to the New York Times, “Silverstein Properties asked Mr. Reiss to let it more fully operate everything from safety systems to tenant relations.” (Moss and Bagli 9/13/2001; Kleinfield 10/14/2001; Weiss 2003, pp. 338; 9/11 Commission 11/3/2003; 9/11 Commission 5/18/2004 pdf file)

David Childs.David Childs. [Source: Publicity photo]Developer Larry Silverstein, who recently took over the lease of the World Trade Center (see July 24, 2001), later tells journalist Steven Brill that he’d been so sickened by the destruction on 9/11, and by the deaths of four of his employees in the WTC, that he did not focus on insurance or financial matters until “perhaps two weeks later.” But according to two people who call him this morning to offer their sympathy, Silverstein soon changes the subject: “He had talked to his lawyers… and he had a clear legal strategy mapped out. They were going to prove, Silverstein told one of the callers, that the way his insurance policies were written the two planes crashing into the two towers had been two different ‘occurrences,’ not part of the same event. That would give him more than $7 billion to rebuild, instead of the $3.55 billion that his insurance policy said was the maximum for one ‘occurrence.’ And rebuild was just what he was going to do, he vowed.” By mid-morning, he calls his architect David Childs, and instructs him to start sketching out a plan for a new building. He tells Childs to plan to build the exact same area of office space as has been destroyed. In fact, Silverstein’s lawyers claim the developer had been on the phone to them on the evening of 9/11, wondering “whether his insurance policies could be read in a way that would construe the attacks as two separate, insurable incidents rather than one.” (Brill 2003, pp. 18-19 and 39-40; Elliott 1/2004) Yet Jerome Hauer, the former director of New York’s Office of Emergency Management, had gone to Silverstein’s office on 9/11, and later claims that Silverstein’s primary concern that day had been his employees, and whether they had gotten out of the WTC. “Larry was absolutely devastated,” he says. (Weiss 2003, pp. 374) Following a lengthy legal dispute, Silverstein will eventually receive $4.55 billion in insurance payouts for the destruction of the WTC (see May 23, 2007). (Topousis 5/24/2007)

Congress approves a $15 billion federal aid package for the battered US airline industry, and sets up a government fund to compensate 9/11 victims’ relatives. (Simon 9/22/2001) However, relatives are only allowed to sue US-designated terrorists, and if they sue anyone else, they are not entitled to any compensation money. The law also limits the airlines’ liability to the limits of their insurance coverage—around $1.5 billion per plane. (Baum 1/17/2002) Nevertheless, some later sue entities that make them ineligible for the fund, such as the Port Authority, owner of the WTC.

Industrial Risk Insurers agrees to make a full payment under its $861 million policy for the loss of World Trade Center Building 7, a 47-story office building which completely collapsed late in the afternoon of 9/11. (Insurance Journal 6/7/2002; Grant 7/10/2002; Hetter 10/21/2003) WTC 7 was owned by Silverstein Properties, which also acquired the lease on the Twin Towers six weeks before 9/11. (International Council of Shopping Centers 4/27/2001; Port Authority of New York and New Jersey 7/24/2001) Larry Silverstein, the president of Silverstein Properties, intends to use $489 million of the insurance payment to cover an existing mortgage on WTC 7, and $65 million of it for other debts and costs. The remaining $307 million will go toward the construction costs of the new WTC 7. (Bloomberg 1/14/2003; Gittrich 1/14/2003) He is currently in a dispute with the carriers of his insurance on the Twin Towers, over whether the 9/11 attack constituted one or two separate events, and this will not be settled until mid-2007 (see May 23, 2007). (Grant 9/11/2002; Bagli 5/23/2007)

Deena Burnett, wife of Flight 93 passenger Tom Burnett, speaks on behalf of the victims’ relatives suing the Saudis.Deena Burnett, wife of Flight 93 passenger Tom Burnett, speaks on behalf of the victims’ relatives suing the Saudis. [Source: Associated Press]More than 600 relatives of victims of the 9/11 attacks file a 15-count, $1 trillion lawsuit against various parties they accuse of financing al-Qaeda and Afghanistan’s former Taliban regime. The number of plaintiffs will quickly increase to 2,500 after the suit is widely publicized. Up to 10,000 were eligible to join this suit. The lawsuit does not allege that Saudi defendants directly participated in the 9/11 attacks, or approved them. Instead, it is alleged they helped fund and sustain al-Qaeda, which enabled the attacks to occur. (Schmidt 8/16/2002; Missing 9/13/2002) Defendants named include:
bullet The Saudi Binladin Group, the conglomerate owned by the bin Laden family. (CNN 8/15/2002)
bullet The National Commercial Bank, one of the largest banks in Saudi Arabia. (Kellman 8/15/2002)
bullet The government of Sudan, for letting bin Laden live in that country until 1996. (Schmidt 8/16/2002)
bullet The World Assembly of Muslim Youth (WAMY). (Schmidt 8/16/2002)
bullet The SAAR Foundation. (Schmidt 8/16/2002)
bullet Al-Rajhi Banking & Investment Corp., which the plaintiffs contend is the primary bank for a number of charities that funnel money to terrorists. (This bank will later be dismissed from the suit (see November 14, 2003-September 28, 2005).) (Schmidt 8/16/2002)
bullet The Benevolence International Foundation. (Schmidt 8/16/2002)
bullet The International Islamic Relief Organization (IIRO) and its parent organization, the Muslim World League (MWL). The suit claims that the IIRO gave more than $60 million to the Taliban. (Schmidt 8/16/2002)
bullet Khalid bin Mahfouz, one-time prominent investor in the Bank of Credit and Commerce International (BCCI) who had to pay a $225 million fine following the collapse of that bank. It is claimed he later operated a bank that funneled millions of dollars to charities controlled by al-Qaeda. (Mahfouz denies supporting terrorism and has filed a motion to dismiss the complaint.) (Schmidt 8/16/2002)
bullet Mohammed al Faisal al Saud, a Saudi prince. (His name will later be dismissed from the suit because of diplomatic immunity (see November 14, 2003-September 28, 2005).) (Schmidt 8/16/2002)
bullet Saudi Defense Minister Prince Sultan. (His name will later be dismissed from the suit because of diplomatic immunity (see November 14, 2003-September 28, 2005).) (Schmidt 8/16/2002)
bullet Prince Turki al-Faisal, former chief of Saudi intelligence. (His name will later be dismissed from the suit because of diplomatic immunity (see November 14, 2003-September 28, 2005).) (Schmidt 8/16/2002) “The attorneys and investigators were able to obtain, through French intelligence, the translation of a secretly recorded meeting between representatives of bin Laden and three Saudi princes in which they sought to pay him hush money to keep him from attacking their enterprises in Saudi Arabia.” (CNN 8/15/2002) The plaintiffs also accuse the US government of failing to pursue such institutions thoroughly enough because of lucrative oil interests. (News 8/15/2002) Ron Motley, the lead lawyer in the suit, says the case is being aided by intelligence services from France and four other foreign governments, but no help has come from the Justice Department. (Gordon 8/16/2002) The plaintiffs acknowledge the chance of ever winning any money is slim, but hope the lawsuit will help bring to light the role of Saudi Arabia in the 9/11 attacks. (News 8/15/2002) A number of rich Saudis respond by threatening to withdraw hundreds of billions of dollars in US investments if the lawsuit goes forward (see August 20, 2002). More defendants will be added to the suit later in the year (see November 22, 2002). (English 8/20/2002)

The Financial Times reports that “disgruntled Saudis have pulled tens of billions of dollars out of the US, signaling a deep alienation from America.” Estimates range from $100 billion to over $200 billion. Part of the anger is in response to reports that the US might attack Saudi Arabia and freeze Saudi assets unless Saudi Arabia makes a serious effort al-Qaeda and other Islamic militant groups. It is also in response to a lawsuit against many Saudi Arabians that also may lead to a freeze of Saudi assets (see August 15, 2002). Estimates of total Saudi investments in the US range from $400 billion to $600 billion. (Khalaf 8/20/2002)

Over 1,400 relatives of 9/11 attack victims sue Iraq for more than $1 trillion, claiming there is evidence Iraq conspired with al-Qaeda on the 9/11 attacks. (Simon 9/5/2002) One of the key pieces of evidence cited is an article in a small town Iraqi newspaper written by Naeem Abd Muhalhal on July 21, 2001. He describes bin Laden thinking “seriously, with the seriousness of the Bedouin of the desert, about the way he will try to bomb the Pentagon after he destroys the White House.” He adds that bin Laden is “insisting very convincingly that he will strike America on the arm that is already hurting,” which has been interpreted as a possible reference to the 1993 bombing of the WTC. Iraqi leader Saddam Hussein apparently praised this writer on September 1, 2001. The lawsuit is based largely on the idea that “Iraqi officials were aware of plans to attack American landmarks,” yet did not warn their archenemy, the US. (Neumeister 9/4/2002) Former CIA agent and terrorism consultant Robert Baer is hired by the prosecuting legal team to find evidence of a meeting between Mohamed Atta and Iraqi agents on April 8, 2001, but despite the help of the CIA, he is unable find any evidence of such a meeting. (Simon 9/5/2002)

Right before the expiration of a one-year legal deadline, the Port Authority, the government body that owns the WTC complex, is sued by five insurance companies, one utility and 700 relatives of the WTC victims. The insurance companies and utility are suing because of safety violations connected to the installation of diesel fuel tanks in 1999 that many blame for the collapse of WTC Building 7. (Debaise 9/10/2002) The relatives’ lawsuit is much more encompassing, and even blames the Port Authority for the Flight 93 hijacking (the Port Authority owns Newark airport, where the flight originated). The relatives’ lawsuit is likely to lie dormant for at least six months as evidence is collected. Relatives are also considering suing the airlines, security companies, and other entities. (Missing 9/13/2002)

An engineering report is released concluding that the destruction of one of the World Trade Center’s Twin Towers would have rendered the other unusable. Swiss Re and other insurance companies involved in the WTC coverage commissioned the study, which was written by California-based Exponent Failure Analysis Associates. It is released the same day as a report on the collapses by WTC leaseholder Silverstein Properties Inc. (see October 23, 2002). Contradicting the Silverstein report, it concludes: “[T]he collapse of one tower in the World Trade Center complex would have severely compromised the future viability of the entire complex.” This supports the insurance companies’ contention that the WTC attacks constituted one loss event, not two, as claimed by Silverstein Properties, thereby entitling Silverstein to a policy limit of $3.5 billion instead of $7 billion. The report, along with the underlying data, computer models, and engineering analyses, have been passed on to the National Institute of Standards and Technology (NIST), which is conducting an investigation into the collapses (see August 21, 2002). (McLeod 10/23/2002; Insurance Journal 10/23/2002; Post 11/4/2002) In late 2004, a jury will rule that the WTC attacks were two events, and Silverstein Properties will be tentatively awarded $2.2 billion in insurance for the destruction of the Twin Towers. (BBC 12/7/2004; Insurance Journal 12/7/2004)

Some of the 9/11 victims’ relatives hold a rally at the US Capitol to protest what they fear are plans by the Bush administration to delay or block their lawsuit against prominent Saudi individuals for an alleged role in financing al-Qaeda. (Guggenheim 11/1/2002) US officials say they have not decided whether to submit a motion seeking to block or restrict the lawsuit, but they are concerned about the “diplomatic sensitivities” of the suit. Saudis have withdrawn hundreds of billions of dollars from the US in response to the suit. The Guardian previously reported that “some plaintiffs in the case say the Bush administration is pressuring them to pull out of the lawsuit in order to avoid damaging US-Saudi relations, threatening them with the prospect of being denied any money from the government’s own compensation scheme if they continue to pursue it. Bereaved relatives who apply to the federal compensation scheme must, in any case, sign away their rights to sue the government, air carriers in the US, and other domestic bodies—a condition that has prompted some of them to call the government compensation ‘hush money.’ The fund is expected, in the end, to pay out $4 billion. They remain, however, free to sue those they accuse of being directly responsible for the attacks, such as bin Laden, and—so they thought—the alleged financers of terrorism.” (Burkeman 9/20/2002)

9/11 victims’ relatives add nearly 50 defendants to their $1 trillion lawsuit against mostly Saudi citizens and organizations (see August 15, 2002). The suit alleges the defendants knowingly provided money and other aid to terrorists, which enabled the 9/11 attacks and other attacks to occur. There are now a total of 186 defendants named in the suit. (Geyelin 11/22/2002; Weinstein 11/23/2002) Newly-named defendants include:
bullet Saudi Interior Minister Prince Nayef. The suit claims he was engaged in payoffs to al-Qaeda. Additionally, as interior minister he controls the activities of numerous Islamic charities said to help finance al-Qaeda. (His name will later be dismissed from the suit because of diplomatic immunity (see November 14, 2003-September 28, 2005).) (Geyelin 11/22/2002; Weinstein 11/23/2002)
bullet Minister of Defense and Aviation Prince Sultan bin Abdul Aziz Al Saud. The suit claims he also was engaged in payoffs to al-Qaeda. (His name will later be dismissed from the suit because of diplomatic immunity (see November 14, 2003-September 28, 2005).) (Geyelin 11/22/2002)
bullet The Saudi American Bank, that nation’s second largest financial institution. The suit alleges that this bank, partly owned and managed by Citibank, financed development projects in Sudan benefiting bin Laden in the early 1990s when he was living there. (This bank will later be dismissed from the suit (see November 14, 2003-September 28, 2005).) (Geyelin 11/22/2002)
bullet Bank Al Taqwa, for raising, managing, investing, and distributing funds for al-Qaeda. (Weinstein 11/23/2002)
bullet Mohamed Jamal Khalifa, bin Laden’s brother-in-law. (Third Amended Complaint. Thomas E. Burnett, Sr., et al. v. Al Baraka Investment and Development Corporation, et al. 11/22/2002 pdf file)
bullet Yassin al-Qadi. (Third Amended Complaint. Thomas E. Burnett, Sr., et al. v. Al Baraka Investment and Development Corporation, et al. 11/22/2002 pdf file)
bullet Saleh Kamel and the Dallah al-Baraka Group. (Third Amended Complaint. Thomas E. Burnett, Sr., et al. v. Al Baraka Investment and Development Corporation, et al. 11/22/2002 pdf file)
bullet Individual members of the bin Laden family, including Bakr bin Laden, Tarek bin Laden, Omar bin Laden, Abdullah Awad bin Laden, and Yeslam Binladin. The suit claims that in the early 1990s, Tarek bin Laden was the general supervisor of the International Islamic Relief Organization (IIRO), a Saudi charity suspected of terrorist ties (see October 12, 2001). (Third Amended Complaint. Thomas E. Burnett, Sr., et al. v. Al Baraka Investment and Development Corporation, et al. 11/22/2002 pdf file)


Ellen Mariani.
Ellen Mariani. [Source: Ellen Mariani]9/11 victim’s relative Ellen Mariani sues the US government, claiming that certain officials had foreknowledge of the 9/11 attacks. “I’m 100 percent sure that they knew,” she says. In doing so, she is ineligible for government compensation from what she calls the “shut-up and go-away fund.” She believes she would have received around $500,000. According to a statement by her lawyer, her lawsuit against President Bush, Vice President Cheney, the CIA, Defense Department, and other administration members “is based upon prior knowledge of 9/11; knowingly failing to act, prevent or warn of 9/11; and the ongoing obstruction of justice by covering up the truth of 9/11; all in violation of the laws of the United States.” As the Toronto Star points out, this interesting story has been “buried” by the mainstream media, at least initially. Coverage has been limited mostly to Philadelphia where the case was filed and New Hampshire where Mariani lives. (Slobodzian 9/23/2003; Zerbisias 11/30/2003; Lin 12/3/2003; Ridgeway 12/3/2003; Smallman 12/9/2003; Associated Press 12/24/2003)

Saudi Defense and Aviation Minister Prince Sultan bin Abdul Aziz.
Saudi Defense and Aviation Minister Prince Sultan bin Abdul Aziz. [Source: Public domain]In a series of rulings, a number of defendants are removed from a 9/11 lawsuit filed in August 2002 (see August 15, 2002). The lawsuit, filed on behalf of 9/11 victims’ relatives, accuses a number of individuals and organizations of funding and supporting al-Qaeda and thus helping the 9/11 attacks to occur. A number of Saudi princes are dropped because they work for the Saudi government. One judge writes in a ruling, “Whatever their actions, they were performed in their official (government) capacities.” According to the court ruling, only the US president, not the courts, has the authority to label a foreign nation as a terrorist supporter. Judges rule that the plaintiffs failed to provide sufficient facts to overcome the kingdom of Saudi Arabia’s immunity. Saudi defense minister Prince Sultan bin Abdul Aziz, Saudi ambassador to Britain Prince Turki al-Faisal, and Prince Mohammed Al-Faisal Al-Saud, among others, are dismissed from the lawsuit, but the lawsuit is allowed to proceed against many more defendants, including the Saudi Binladin Group, the multibillion dollar bin Laden family company. (Associated Press 11/16/2003; Bartelme 11/18/2003; Associated Press 1/19/2005; Hamblett 9/28/2005) A judge writes in a ruling that “the Saudi Binladin Group maintained close relationships with Osama bin Laden at certain times” and that it remains “unclear” whether these ties continued since bin Laden became involved in terrorism. (Follath and Mascolo 6/6/2005) The International Islamic Relief Organization (IIRO) is allowed to remain as a defendant, even though this charity has considerable ties to the Saudi government. (Hamblett 9/28/2005) Some of the Saudi princes, such as Prince Sultan and Prince Salman, are represented in the case by the prestigious Dallas-based law firm of Baker Botts. James Baker, former Secretary of State and close associate of the Bush family, is one of the senior partners of the law firm. (Isikoff and Hosenball 4/16/2003; Hamblett 9/28/2005)

The deadline arrives for 9/11 victims’ relatives to apply for government compensation. (Harper 12/23/2003) By receiving an award from the fund, families give up their right to sue the airlines, airports, security companies, or other US organizations that may be faulted for negligence and inadequate security measures. (CBS News 3/7/2002; Kasindorf 7/13/2003; Eggen 9/10/2003) Relatives may still sue “knowing participants in the hijacking conspiracy” without losing compensation. (Kasindorf 7/13/2003) Ninety-seven per cent of the 2,973 eligible families apply to the fund; compensation averages about $2.1 million per family. However, 70 families decide to forego the fund, and instead sue various government agencies and private companies for alleged negligence. (Shenon 6/16/2004; Wright 6/16/2004) Widow Beverly Eckert explains her decision: “I am suing because unlike other investigative avenues… my lawsuit requires all testimony be given under oath and fully uses powers to compel evidence. The victims’ fund was not created in a spirit of compassion.… Lawmakers capped the liability of the airlines at the behest of lobbyists who descended on Washington while the September 11 fires still smoldered.” (Eckert 12/19/2003)

Sibel Edmonds.Sibel Edmonds. [Source: Linda Spillers/ Getty]US District Judge Reggie B. Walton, appointed by George W. Bush, dismisses Sibel Edmonds’ lawsuit (see June 2002) against the Justice Department, accepting the government’s argument that allowing the case to proceed would jeopardize national security (Bridis 7/6/2004; Bohn 7/7/2004) and infringe upon its October 2002 declaration (see October 18, 2002) that classified everything related to Edmonds’ case. Walton refuses to explain his ruling, insisting that to do so would expose sensitive secrets. “The Court finds that the plaintiff is unable to establish her First Amendment, Fifth Amendment, and Privacy Act claims without the disclosure of privileged information, nor would the defendants be able to defend against these claims without the same disclosures… the plaintiff’s case must be dismissed, albeit with great consternation, in the interests of national security,” Walton says in his ruling. (Bohn 7/7/2004) Walton never heard evidence from Edmonds’ lawyers. (Bridis 7/6/2004; Associated Press 7/7/2004)

Cantor Fitzgerald Securities, a bond-trading firm that lost 658 employees in the World Trade Center attacks, files a $7 billion lawsuit against the government of Saudi Arabia for allegedly supporting al-Qaeda prior to 9/11. The lawsuit names dozens of other defendants, including many Saudi banks and Islamic charities. Many of the defendants had also been named in the still-pending $300 billion Ron Motley lawsuit (see August 15, 2002). The Cantor Fitzgerald lawsuit claims the Saudi Arabian government “knew and intended that these Saudi-based charity and relief organization defendants would provide financial and material support and substantial assistance to al-Qaeda.… This uninterrupted financial and material support and substantial assistance enabled the al-Qaeda defendants to plan, orchestrate and carry out the Sept. 11 attacks.” (Neumeister 9/3/2004)

Riggs Bank is added to the list of defendants in a 9/11 lawsuit filed on behalf of 9/11 victims’ relatives (see August 15, 2002). The amended lawsuit alleges, “Riggs’ constant failure to comply with banking oversight laws resulted in funds being forwarded from high risk Saudi Embassy accounts at Riggs Bank to at least two September 11 hijackers.” (Simpson 9/13/2004) Riggs Bank is under investigation at the time and will later plead guilty to violating banking laws (see March 29, 2005). The bank also appears to have a long standing but murky relationship with the CIA (see July 2003 and December 31, 2004).

Omer Marmari.Omer Marmari. [Source: Public domain via Israeli TV]Four of the five Israelis arrested on 9/11 (see 3:56 p.m. September 11, 2001), Paul and Sivan Kurzberg, Omer Marmari, and Yaron Shmuel, file a multimillion dollar lawsuit against the US Justice Department. They claim they were arrested illegally, then held without charge and interrogated and tortured for months. Their lawyer claims the case will serve as a venue to debunk theories that Israel was behind the 9/11 attacks. (Yoaz 9/16/2004; Jerusalem Post 9/16/2004) Forward, a publication geared towards the Jewish population in the US, reported in 2002 that the FBI concluded at least two of the five were Mossad agents and that all were on a Mossad surveillance mission. (Perelman 3/15/2002) As of early 2011, there have been no further media reports about this lawsuit.

Insurance companies reach a $2 billion settlement with real estate development and investment firm Silverstein Properties for the destruction of the World Trade Center on 9/11. The agreement, which involves seven of the two-dozen insurers for the WTC, ends more than five years of legal wrangling. The other insurance companies involved have already paid out about $2.55 billion, meaning the total payout will be $4.55 billion. In September 2006, Silverstein Properties and the New York Port Authority had agreed to split the reconstruction of the WTC site between them, and to divide up the remaining insurance proceeds accordingly. Consequently, the Port Authority is to receive about $870 million from the latest settlement, while the remaining $1.13 billion will go to Silverstein Properties. (New York State 5/23/2007; Bagli 5/23/2007; Schuster 5/23/2007; Gralla and Wilchins 5/23/2007) Silverstein Properties acquired the lease on several of the World Trade Center buildings, including the Twin Towers, in July 2001 (see July 24, 2001). (Port Authority of New York and New Jersey 7/24/2001) As the New York Times summarizes, “At that time, two dozen insurers had signed binders pledging to provide $3.5 billion in insurance coverage, but had not finished the documentation.” Therefore, after 9/11, an “ugly dispute developed over which insurance policy was in effect at the time of the attack. Mr. [Larry] Silverstein [the president of Silverstein Properties] argued that since two jetliners slammed into the two towers, he was entitled to a double payment on the $3.5 billion policy. But many of the insurers countered that they had agreed to a different policy that did not permit double claims.” (Bagli 5/23/2007) In 2004, federal juries had decided that Silverstein Properties could collect a maximum of $4.68 billion for the loss of the WTC. The current settlement therefore means the insurers are obliged to pay 97.2 percent of that maximum. (Levitt 5/23/2007; New York State 5/23/2007; Schuster 5/23/2007; Gralla and Wilchins 5/23/2007) Silverstein Properties had separately been awarded $861 million of insurance money in 2002 for the loss of World Trade Center Building 7, which also collapsed on 9/11 (see May 2002).

Abdallah Higazy, an Egyptian national who falsely confessed to owning a suspicious airline transceiver after the 9/11 attacks because the FBI threatened to have his family tortured (see December 17, 2001), December 27, 2001, and January 11-16, 2002), has his lawsuit against the FBI reinstated by a US appeals court. The majority opinion finds, “An officer in [FBI agent Michael] Templeton’s shoes would have understood that the confession he allegedly coerced from Higazy would have been used in a criminal case against Higazy and that his actions therefore violated Higazy’s Constitutional right to be free from compelled self-incrimination.” (Gerstein 10/18/2007)
Decision Issued and Withdrawn - Interestingly, the appeals court posts its full opinion on the case, then within minutes withdraws that opinion and issues another one, with an identical conclusion but with much of the details of Higazy’s allegations redacted. The new ruling reads: “This opinion has been redacted because portions of the record are under seal. For the purposes of the summary judgment motion, Templeton did not contest that Higazy’s statements were coerced.” But the initial opinion has already been downloaded by dozens of legal observers and bloggers, and the evidence redacted by the court is in the public view.
"People Don't Do that Voluntarily" - Washington Post reporter Dan Eggen writes, “The fresh details about his interrogation in December 2001 illustrate how an innocent man can be persuaded to confess to a crime that he did not commit, and the lengths to which the FBI was willing to go in its terrorism-related investigations after the Sept. 11 attacks.” A Justice Department spokesman says that although it does not concede that Higazy’s allegations are true, it has agreed to proceed under the assumption that they are true in order to argue the case. The appellate court does not rule on the veracity of Higazy’s story, but instead concludes that Templeton lacks the “qualified immunity” that would shield him from a civil suit.
Redacted Information - Appellate court clerk Catherine O’Hagan Wolfe says that the original Higazy ruling contained information that should have been sealed from the outset. The decision to seal the information was the court’s, she says, and not the Justice Department’s or the FBI. She says that the decision to seal the information about Templeton’s coercion, and Higazy’s fears of the Egyptian intelligence service, was made out of concern for the safety of Higazy and his family. “Prior to the world of the Internet, a decision would be issued and then withdrawn without any consequences of any moment,” Wolfe says. “Now if that happens it raises the specter of interference or some nefarious intent at work, which is not the case.” Appellate lawyer Stephen Bergstein says that the redacted information “was more embarrassing than worthy of secrecy.” He continues: “Had they left it in, a lot of people probably wouldn’t have noticed. With the Internet, nothing ever goes away.” (Howard Bashman 10/18/2007; Feuer 10/20/2007; Eggen 10/25/2007)

It is revealed that Larry Silverstein, the developer of Ground Zero, is seeking $12.3 billion in damages from airlines and airport security companies for the attacks on 9/11. Silverstein sought the damages in a claim filed in 2004, alleging that the companies failed to prevent the hijackers from taking over the planes that destroyed the World Trade Center buildings. The size of his claim was previously unknown, but is now revealed at a status conference in the US District Court in Manhattan. (Hartocollis 3/27/2008) Of the $12.3 billion sought, $8.4 billion would be to replace the property destroyed in the attacks, and the other $3.9 billion would cover lost income and expenses associated with renting the new buildings. Companies named in the suit include American Airlines, United Airlines, Continental Airlines, Boeing, and the Massachusetts Port Authority (Massport), which manages Logan Airport in Boston, from where the two planes that hit the WTC took off. (Mackey 3/27/2008) Silverstein’s case is consolidated with similar, earlier lawsuits by other property owners and some families of 9/11 victims. Silverstein is by far the biggest of the claimants. A lawyer for the airlines says that if Silverstein wins, it could push the total claims beyond the amount of insurance the airlines and security companies have available. Silverstein, the CEO and president of Silverstein Properties, only signed the 99-year lease on the World Trade Center six weeks before 9/11 (see July 24, 2001). He has already won nearly $4.6 billion in insurance payments stemming from the attacks (see May 23, 2007). (Hartocollis 3/27/2008; NY1 News 3/28/2008)

FBI special agent and whistleblower Robert G. Wright Jr. wins the right to publish most of the information over which he has been fighting the FBI in court for nearly seven years (see May 9, 2002). US District Court Judge Gladys Kessler rules that Wright can publish most of the information in his 500-page manuscript, all of the information in two complaints he had filed with the Department of Justice Office of Inspector General regarding the FBI’s handling of terrorism investigations, and his answers to New York Times reporter Judith Miller’s questions. Kessler also rules that Wright’s colleague and co-plaintiff, FBI Special Agent John Vincent, can publish his answers to Miller’s questions.
Judge Repeatedly Faults FBI - In her 41-page memorandum opinion, Kessler repeatedly finds fault with the FBI. The preface to the opinion summarizes the proceedings and the related issues in this way: “This is a sad and discouraging tale about the determined efforts of the FBI to censor various portions of a 500-page manuscript, written by a former long-time FBI agent, severely criticizing the FBI’s conduct of the investigation of a money laundering scheme in which United States-based members of the Hamas terrorist organization were using non-profit organizations in this country to recruit and train terrorists and fund terrorist activities both here and abroad. The FBI also sought to censor answers given by both plaintiffs to a series of written questions presented to them by a New York Times reporter concerning Wright’s allegations about the FBI’s alleged mishandling of the investigation. In its efforts to suppress this information, the FBI repeatedly changed its position, presented formalistic objections to release of various portions of the documents in question, admitted finally that much of the material it sought to suppress was in fact in the public domain and had been all along, and now concedes that several of the reasons it originally offered for censorship no longer have any validity. Unfortunately, the issues of terrorism and of alleged FBI incompetence remain as timely as ever.” (Memorandum Opinion: Wright, v. FBI (PDF) 5/6/2009 pdf file)
A 'Pyrrhic Victory' for Wright - Reporting on the case for Politico, Josh Gerstein will call the outcome “a pyrrhic victory for [Wright], since the passage of time appears to have diminished the market for his book.” Gerstein will quote one of Wright and Vincent’s lawyers, Paul Orfanedes of Judical Watch, as saying, “It’s a perfect example of how delaying somebody’s ability to publish is a clear violation of their rights.” Gerstein will also report, “Orfanedes said Wright’s book ‘might be made public in a reduced format,’ but that the group’s main hope now was to expose how the government system for pre-publication reviews of books by FBI, CIA, and other national security-related officials, is dysfunctional.” (Gerstein 5/11/2009)
FBI Attempts to Censor Judge's Memorandum Opinion and Fails - In an ironic twist, an FBI demand for redaction of a portion of Kessler’s memorandum opinion calls attention to that portion of the text, which is easily readable due to improper redaction technique; the text under the blacked out portion can be copied and pasted. The redacted portion is an FBI argument for why a portion of Wright’s manuscript must be redacted. It reads, “[D]isclosure of the location and use of this infrastructure could allow individuals to survey, attempt to penetrate, or disrupt the activities that take place in the infrastructure.” It is unclear why the FBI believes that a general reference to sensitive infrastructure is sensitive in itself. (Memorandum Opinion: Wright, v. FBI (PDF) 5/6/2009 pdf file; Memorandum Opinion: Wright, v. FBI (PDF) 5/6/2009; Memorandum Opinion: Wright, v. FBI (PDF) 5/6/2009)


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