In 1989, agents of the Libyan government blew up a plane of civilians, killing 170 passengers and crew. Victims’ families brought suit against the Socialist People’s Libyan Arab Jamahiriya in U.S. District Court in D.C. for damages, and after winning summary judgment, the court entered judgments totaling approximately $1.3 billion. Libya appealed to the D.C. Circuit.
The very day the appeal was filed, the U.S. government and Libya entered into a settlement agreement which established a $1.5 billion settlement fund to compensate U.S. victims, and a $300 million fund to compensate “Libyan victims of U.S. airstrikes.” The two governments agreed that the funds were in full settlement of all claims for its respective nationals. As a consequence of this agreement, all pending lawsuits in the courts were “terminated.” The U.S. intervened in the D.C. Circuit appeal, and asked the court to dismiss. The court agreed, and terminated the appeal

