Judge Katherine Forrest
Plaintiffs, judgment creditors of the Islamic Republic of Iran sought billions of dollars in unsatisfied money judgments. Asserting that Bank Markazi (the Central Bank of Iran), Banca UBAE SpA and Clearstream Banking S.A. engaged in fraudulent conveyances and transfers of $250 million, plaintiffs sought rescission relating to that same $250 million. Plaintiffs’ claims against Bank Markazi derived from two U.S. dollar denominated bonds with face values totalling $250 million. District court denied Bank Markazi dismissal under the Foreign Sovereign Immunities Act, finding that plaintiffs’ allegations supported jurisdiction against Bank Markazi—an instrumentality of Iran—because their claims sought to establish liability rather than to attach assets in execution of a judgment. Additionally, rescission was not fatal to subject matter jurisdiction where the SAC clearly refers to rescission and disregarding the fraudulent conveyances as the remedy sought. The court granted plaintiffs discovery as to Bank Markazi’s assets in the United States—including any accounts at financial institutions at which credits for the benefit of Bank Markazi are maintained, or upon which Bank Markazi could draw if it chose to do so.