U.S. Judge Refuses to Dismiss Holocaust-Related Lawsuits

Compensation of Nazi-era slave laborers was again delayed Tuesday when a federal judge refused to reconsider her decision blocking the dismissal of Holocaust-related lawsuits against German companies.

The ruling was a blow to many Holocaust survivors who had hoped that U.S. District Judge Shirley Wohl Kram would allow the cases to be dropped so that a $5-billion German compensation fund could begin making payments. German government and corporations backing the fund will not release money until all U.S. litigation against German defendants is dismissed.

Kram said in her ruling that she would not dismiss the lawsuits because of remaining concerns that such action might hurt claimants in separate litigation that resulted in a $40-million settlement reached with Bank Austria.

“The court would like to express sympathy and genuine, serious concern for elderly victims who are waiting to receive compensation for their claims,” Kram wrote, adding that there is nothing to prevent the German government from beginning interim payments to claimants.

She also said the plaintiffs’ lawyers could renew their motion to dismiss the suits with a plan to address her concerns about the Bank Austria settlement.

Several lawyers representing Holocaust survivors filed a notice of appeal.

“We have decided to seek immediate relief from the 2nd Circuit,” said lawyer Robert Swift.

Negotiators want money to go to 1 million elderly former slaves and forced laborers swiftly because they are dying at the rate of 10% to 15% a year. Much of the money will go to Eastern Europeans who were locked out of previous rounds of compensation that Germany paid.

Holocaust survivors allege that the firms profited from their toil as slaves or conspired with the Nazis to plunder Jewish property.