Federal Court Awards Nearly $700 Million in Damages Against Iran for Iraq War Attacks
A federal court has awarded nearly $700 million in damages to U.S. service members and military families harmed by attacks during the Iraq War. The judgment holds the Islamic Republic of Iran liable.
A U.S. federal court has awarded approximately $691 million in damages to American service members and their families who suffered harm due to attacks during the Iraq War. The judgment, issued on September 30, 2026, targets the Islamic Republic of Iran.
The court's decision in Heaton v. Islamic Republic of Iran adopted findings that Iran is responsible for the damages incurred by service members and their families. The total award includes compensatory and punitive damages, along with post-judgment interest.
The Carlson Law Firm represented 49 plaintiffs in the proceedings, including veterans injured in combat and family members of deceased servicemembers. The legal action stems from a series of attacks during the Iraq War, many involving explosively formed penetrators (EFPs).
The case falls under the terrorism exception to the Foreign Sovereign Immunities Act (FSIA), which permits certain victims of state-sponsored terrorism to sue foreign governments. The court examined evidence detailing Iran's connections to militia and terrorist organizations operating in Iraq, as well as its role in the development and use of EFPs. The plaintiffs successfully established a sufficient link between Iran and the EFP attacks for which liability was imposed.
Craig Carlson, Managing Partner at The Carlson Law Firm, stated that the judgment recognizes the profound harm suffered by the families and holds Iran accountable. He emphasized that while no ruling can undo the losses, accountability and acknowledgment are crucial for the victims.