The Israeli city of Bat Yam has filed a damages lawsuit against the Islamic Republic of Iran. The backdrop is the devastating Iranian missile attack of June 2025, in which nine people were killed, numerous others were injured, and large parts of a residential neighborhood were destroyed. According to a report by Ynetnews published on Sunday, the city is seeking 250 million shekels, equivalent to approximately 78 million dollars.
The lawsuit was prepared on the initiative of Mayor Tzvika Brot. An international team of lawyers led by the Israeli organization Shurat HaDin and its president Nitsana Darshan-Leitner handled the legal drafting.
On June 15, 2025, an Iranian ballistic missile struck a residential area in Bat Yam, south of Tel Aviv. Nine residents lost their lives and 178 people were injured. A total of 160 buildings were damaged, of which 22 had to be demolished immediately. Thousands of people temporarily lost their homes.
The city administration had to finance extensive emergency measures. These included the evacuation of affected residents, hotel accommodations and replacement housing, social support services, security measures, as well as debris removal and the restoration of public facilities.
Unusual delivery of the lawsuit in New York
In order to advance the legal proceedings, Israeli law required proof that an official representative of the defendant state had received the lawsuit or had at least been given the opportunity to take note of its contents.
For this reason, Mayor Brot and Darshan-Leitner traveled to New York last week. There, they attempted to hand a Persian-translated copy of the lawsuit to a representative of the Iranian mission to the United Nations.
According to Ynetnews, the operation had been prepared over four months. The team had gathered information about the movements of Iranian diplomats and deployed observers near UN headquarters.
Eventually, the delegation managed to approach the First Secretary of the Iranian UN mission on a street in Manhattan. The diplomat stated that he was not permitted to make contact with the Israelis and attempted to leave. The Israeli delegation then accompanied him for a short distance and read aloud the contents of the lawsuit.
🚨 DIPLOMATIC AMBUSH IN MANHATTAN: ISRAELI MAYOR HANDS IRAN A $78 MILLION BILL
Bat Yam Mayor Tzvika Brot, accompanied by attorney Nitsana Darshan-Leitner, president of Shurat HaDin – Israel Law Center, confronted a senior Iranian diplomat near UN headquarters in Manhattan to serve a NIS 250 million lawsuit against Iran.
The lawsuit seeks compensation for Iran’s June 2025 missile attack on Bat Yam during Operation Rising Lion, which killed 9 residents, injured 178 and damaged 160 buildings.
The operation reportedly took four months to prepare, with the Iranian diplomat attempting to avoid the delegation.
Brot declared:
“They sent us missiles, and we sent them a bill.”
The city hopes to recover compensation from funds linked to a longstanding $1.1 billion financial dispute between Israel and Iran.
@ShuratHaDin
Source: Ynet— Mossadil Commentary (@MOSSADil) November 8, 2026
Mayor Brot described the action as part of an outstanding account with the Iranian regime. “They sent us missiles, and we sent them a bill,” he declared, in essence.
Compensation from Iranian funds in Israel?
The greatest difficulty, however, is likely to be not the legal enforcement of the claim, but the actual collection of the money.
According to the Ynetnews report, Iran now has 60 days to respond to the lawsuit. Should Tehran fail to respond, the city could apply for a default judgment.
The city administration hopes to receive any potential compensation payments from funds associated with the Israeli Eilat-Ashkelon Pipeline Company.
The pipeline project dates back to the period before the Islamic Revolution of 1979, when Israel and Iran still maintained diplomatic and economic relations. An international arbitration tribunal later ordered Israel to pay approximately 1.1 billion dollars to Iran. Israel refused to transfer the funds, citing the prohibition on financial dealings with a hostile state.
Should Bat Yam succeed in court, the city administration hopes to use a portion of these funds for compensation. Whether this is legally and practically possible, however, remains an open question.
According to Ynetnews, the initiative was advanced with the support of Prime Minister Benjamin Netanyahu, the Israeli Foreign Ministry, the National Security Council, and other government bodies.
Darshan-Leitner emphasized that the fight against Iran must not be limited to military measures. The regime must also be held accountable for its attacks on Israeli civilians in courts of law and through the seizure of financial assets.
There are differing figures regarding the exact amount of the claim. While Ynetnews reports 250 million shekels, Israel National News cites a claim of approximately 208 million shekels. Reports also differ on the competent court.
With the lawsuit, the Bat Yam city administration says it aims to hold Iran financially accountable for the damages caused by the June 2025 missile attack. Whether the claim will succeed in court and whether any potential compensation payments can actually be collected remains to be seen.
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