Jessy Edwards  |  May 11, 2021

Category: Legal News

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9/11 families are filing a class action lawsuit over lack of victim compensation.
(Photo Credit: avevhamb/DepositPhotos.com)

Family members and spouses of six people who were killed in the 9/11 terrorist attacks are filing a class action against the U.S. Treasury Department, Department of Justice and top officials, who they say are responsible for them being underpaid by a victim compensation fund. 

In the class action lawsuit filed Monday in a Washington D.C. federal court, the group took aim at some of the U.S. governments’ top officials and departments.

The class action names as defendants the U.S. Attorney General, the Department of Justice, the Secretary of the Treasury, the Department of the Treasury, the Office of Management and Budget and the Special Master of the Victims of State Sponsored Terrorism Fund.

Six people say they are the surviving spouses and family members of those killed on American Airlines Flight 11 and in both towers of the World Trade Center as a result of the Sept. 11, 2001, terrorist attacks. One victim, Sharon Premoli, was injured trying to exit the North Tower of the World Trade Center from the 80th floor, after the attacks. 

Each family member says they are eligible to receive award distributions from the U.S. Victims of State Sponsored Terrorism Fund (VSST), but have not received what they were promised.

They say, in 2015, Congress created the VSST to compensate victims of state sponsored terror, including those who lost loved ones on Sept. 11, 2001. 

Originally, it was required that the government allocate half of civil and all criminal funds forfeited or paid to the United States after Dec. 18, 2015 for violations of various sanctions regimes into the VSST, to pass on to victims.

A Special Master was also appointed to administer the fund and ensure terror victims received their fair share “on a pro rata basis, based on the amounts outstanding and unpaid on eligible claims.” 

In 2019, Congress increased the amount of civilly forfeited funds that should have been deposited into the VSST starting in December 2015 from 50 percent to 75 percent, to grow the overall compensation available. However, the group alleges the government failed to appropriately fund and administer the VSST at this level.

The government allegedly ignored the requirement to increase the deposits to 75 percent, the class action states, “resulting in an underpayment to plaintiffs of millions of dollars.” 

The government also allegedly failed to pay claims on a pro rata basis based on the amounts outstanding and unpaid on eligible claims, “resulting in an underpayment of millions of dollars to newly-eligible VSST claimants,” according to the class action.

The family members, victims and spouses are suing for Violation of the VSST Act and the Clarification Act for failing to allocate the required 75 percent. 

They are also suing under the Administrative Procedure Act (APA), which governs the process by which federal agencies develop and issue regulations.

“Defendants’ action in failing to allocate the correct amount of funds to pay terror victims and their families constitutes an arbitrary, capricious, and unlawful decision in violation of the APA,” the class action states.

The group is asking for an order requiring the government to pay third-round VSST claimants what they are due, plus attorneys fees and costs and a jury trial. The class action seeks to represent a Class of 9/11-related claimants who are eligible for compensation from the VSST. 

Meanwhile, 9/11 first responders, survivors, and their families now have until 2090 to apply for relief through the 9/11 Victims Compensation Fund Extension. Fill out the form on this page to see if you qualify. 

What do you think of the government’s handling of the compensation fund? Let us know in the comments! 

The plaintiffs are represented by Stephen D. Palley, Jerry S. Goldman and Bruce Strong of Anderson Kill, LLP, James P. Kreindler of Kreindler & Kreindler LLP and Jodi Westbrook Flowers, John M. Eubanks and Robert T. Haefele of Motley Rice LLC.

The 9/11 Compensation Fund Class Action Lawsuit is O’Neill et al., v. Merrick Garland et al., Case No. 1:21-cv-01288, in the U.S. District Court District of Columbia.


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7 thoughts onFamilies of 9/11 Victims File Class Action, Claiming Victim Compensation Underpaid

  1. Allison Huxtable says:

    Feinberg and Feldman are hard core criminals with law degrees. It’s shocking how arrogant they are towards these deserving victims.

  2. clive mcnulty says:

    Hi my sister died in the north tower 9/11 . British families have not had any payments at all .

    1. Brent says:

      Clive. My Mum was a victim as well. A British citizen. Have also not received compensation. If you would like to discuss please contact me.

  3. Ed says:

    I think the government doesn’t treat their citizens the same as they do when this type of terror takes place on there soil. My brother died at the pentagon on 9/11 . The parents and siblings were disregarded. The spouses and children were paid in full. Well that’s what they said. I know for a fact that my sister in law and her kids were paid in the millions. But we had to wait for 18 years to receive anything. When we did guess what? The spouses and children got upset and signed a petition to be involved in the fund! And they got it! But instead of being fair about it congress decided to take our cap away and gave them more! Now how fair is that? They miss handle this situation. It’s so disgusting. Sooo I’am sick of hearing how upset they are about not being included in any money. They keep forgetting the millions they receive pro bono right after it happened. Everyone deserve it for their loss. But the majority of us are getting screwed. If anything happens in another country the United States would pay them off in full. Quickly! But when 9/11 happened here in the United States we get bits and pieces that take years to receive anything. And have families of 9/11 fighting against each other. So the government needs to take care the people who are still suffering to this day.

    1. Allison huxtable says:

      We need to organize. It is unacceptable to decent human beings that you all have been continously violated and revitalized. I’m truly sorry and I will help all I can.

  4. Anthony Joseph Vola says:

    Finally received a settlement statement for one of my estate claims on june 23 I wonder how long it will take for check to arrive

  5. Anthony Joseph Vola says:

    Iam still waiting for payment from fund been waiting over a year

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