World Trade Center Developer Silverstein's Suit Dismissed

Real estate developer Larry Silverstein can’t recoup any of the $1.2 billion recovered by World Trade Center insurers in settlements with airlines and airport security companies over the Sept. 11, 2001, terrorist attack that destroyed the office complex, a judge ruled.

U.S. District Judge Alvin Hellerstein in Manhattan today dismissed a suit by several companies associated with Silverstein against QBE Insurance (Europe) Ltd., Industrial Risk Insurers and three Lloyds of London syndicates.

Hellerstein ruled that the $4 billion Silverstein received in a 2007 settlement with World Trade Center insurers fully compensated him for any damages he could have claimed against the aviation defendants, including United Continental Holdings Inc. (UAL) and AMR Corp. (AAMRQ)’s American Airlines.

After paying Silverstein, a group of World Trade Center insurers sued to recover the money from the aviation defendants, settling for $1.2 billion.

Bud Perrone, a Silverstein spokesman at Rubenstein Communications, declined to comment on the ruling.

The case is In Re September 11 Litigation, 21-mc-00101, U.S. District Court, Southern District of New York (Manhattan).

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