Federal Court Awards Nearly $700 Million to U.S. Service Members and Families in Judgment Against Iran

The Carlson Law Firm represents veterans and military families harmed in deadly attacks during the Iraq War

KILLEEN, Texas, Oct. 15, 2026 /PRNewswire/ -- A federal court has awarded nearly $700 million in damages to U.S. service members and military families harmed by deadly attacks during the Iraq War in a judgment against the Islamic Republic of Iran.

The Sept. 30, 2026 judgment in Heaton v. Islamic Republic of Iran followed a Report and Recommendation issued by U.S. Magistrate Judge Matthew J. Sharbaugh of the U.S. District Court for the District of Columbia. U.S. District Judge Jia M. Cobb adopted Judge Sharbaugh's findings and recommendations in full, awarding approximately $691 million in compensatory and punitive damages, along with post-judgment interest.

The Carlson Law Firm represented 49 plaintiffs in proceedings, including U.S. veterans who were injured in combat and family members of servicemembers who were killed.

The case stems from a series of attacks during the Iraq War, many involving explosively formed penetrators, commonly known as EFPs, and other improvised explosive devices.

The plaintiffs brought their claims under the terrorism exception to the Foreign Sovereign Immunities Act (FSIA), which allows certain U.S. victims of state-sponsored terrorism to pursue claims against foreign governments.

In evaluating the attacks, the court examined extensive evidence concerning Iran's relationship with militia and terrorist organizations operating in Iraq, as well as Iran's connection to the development, supply and use of EFPs. The court found that plaintiffs had established a sufficient connection between Iran and the EFP attacks for which liability was imposed.

For the service members represented in the case, the attacks caused devastating and life-changing injuries. Other plaintiffs sought justice for loved ones who were killed while serving their country.

"As a veteran, there are few responsibilities I take more seriously than standing beside the men and women who put their lives on the line for this country," said Craig Carlson, Managing Partner of The Carlson Law Firm. "These service members went to war on behalf of the United States. Some came home carrying injuries that changed the course of their lives, and some never came home at all. This judgment recognizes the extraordinary harm suffered by these families and holds Iran accountable for its role in that harm."

The resulting judgment includes both compensatory damages and punitive damages.

The decision represents another significant result for The Carlson Law Firm in litigation involving state-sponsored terrorism and American military victims.

"Our military members and their families can live with the consequences of these attacks for decades," Carlson said. "No judgment can undo what happened to them. But accountability matters. They deserve to have what was done to them recognized, and they deserve people willing to continue fighting for them long after they have left the battlefield."

About The Carlson Law Firm

The Carlson Law Firm is a national, veteran-owned and operated law firm founded in Killeen, Texas, in 1976. For 50 years, the firm has represented individuals and families in complex litigation while remaining committed to service, compassionate advocacy and the pursuit of justice for veterans and military families.

The Carlson Law Firm has successfully represented victims in litigation involving state-sponsored terrorism and military injuries, including service members, veterans and Gold Star families.

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SOURCE The Carlson Law Firm