US court reverses record forfeiture order over Iran assets

A record terrorism-related forfeiture order benefiting families of some Sept. 11 victims and others has been reversed on appeal.

The 2nd U.S. Circuit Court of Appeals rejected a judge's reasoning Wednesday in ordering the sale of a 36-story Manhattan office building worth about $1 billion and other properties.

In 2013, the judge said revenue from the buildings passed through a state-owned Iranian bank, violating a U.S.-trade embargo.

The appeals court disagreed that the properties were controlled by Iran.

Settling creditors also include families and estates of victims of the 1983 bombings of a U.S. Marine barracks in Beirut, the 1996 bombing of the Khobar Towers in Saudi Arabia and attacks in Israel.

Buildings also were to be sold in the Queens borough; Houston; Carmichael, California; Catharpin, Virginia; and Rockville, Maryland.