STATEMENT OF SPECIAL MASTER KENNETH FEINBERG REGARDING
THE LAWSUIT AGAINST THE SEPTEMBER 11 VICTIM COMPENSATION FUND

“We have not read the complaint and, therefore, are not in a position to comment on particular allegations. We believe that the program fully complies with the statute and the regulations, and provides compensation to victims in a manner that is both reasonable and fair to all families. We also continue to believe that such tax free awards compare very favorably to the net recovery that a claimant might expect, if successful, under the conventional tort claim alternative given very real litigation risks on liability, damages, and collectability, substantial litigation expenses and large attorneys fees, as well as years of delay in actual receipt of any cash recovery. Indeed, awards for high income individuals have often been in the $2 to $4 million dollar range after collateral offsets. To date, the average award under the program after collateral sources is over $1.5 million dollars tax free. Awards for deceased victims have been as high as $5.7 million; awards for the most severely injured victims have been as high as $6.7 million.”

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03-043