NEW YORK (VINnews) — After nearly two decades of litigation, a $318 million settlement will direct proceeds from a Manhattan skyscraper toward victims of Iranian-backed terrorism, including Jewish and Israeli families, in a case tied to alleged concealed Iranian government assets, according to a report from the Jewish Telegraphic Agency.

The agreement centers on a 36-story office tower at 650 Fifth Avenue, which prosecutors said generated millions in rental income that was ultimately routed to the Iranian government through hidden channels following the 1979 Islamic Revolution. Authorities alleged that the arrangement involved the Alavi Foundation and Bank Melli Iran, both of which were subject to U.S. sanctions.

For years, victims of Iran-backed attacks obtained court judgments that went unpaid, forcing continued legal efforts to recover assets inside the United States. The settlement marks a long-awaited resolution for many of those families, officials said.

Among those expected to receive compensation are victims and families connected to attacks such as the 2001 bombing of a Jerusalem restaurant that killed 15 people, as well as victims of other assaults attributed to Iranian-backed groups, according to JTA.

The deal also follows years of federal litigation involving more than $5 billion in terrorism-related judgments against Iran, including claims tied to victims of the September 11, 2001 attacks.

U.S. officials said the resolution reflects a broader effort to ensure that assets linked to sanctioned entities are used to compensate victims rather than remain under foreign control.

Under the agreement, the Alavi Foundation is expected to be dissolved, with its assets — including the Manhattan property — transferred to a newly formed charitable entity that will be monitored to ensure independence, according to officials cited in the report.

U.S. Attorney Jay Clayton described the outcome as the result of a long effort to trace and recover concealed Iranian-linked assets and redirect them to victims of terrorism.