Insurers join 9/11 victims suing Saudi Arabia

NEW YORK

Dozens of American insurance companies have sued the Saudi Arabian government and charities in that country, joining hundreds of families of Sept. 11 victims that filed lawsuits earlier this week.

The new lawsuit filed late Thursday in the U.S. District Court in Manhattan includes national insurance companies such as Liberty Mutual and Safeco, and seeks more than $2 billion in damages, according to media reports.

About 800 victims’ families, and approximately 1,500 people injured while responding to the 9/11 attacks in New York, filed a lawsuit late last week against the Saudi government and charities.

They claim Saudi Arabia and a number of its state-sponsored charities provided financial and material support to the al-Qaeda terrorist organization to carry out the attacks.

The plaintiffs described the attacks as an "act of international terrorism," that falls under the Justice Against Sponsors of Terrorism Act (JASTA) approved by Congress in September.

The JASTA was the first and only legislation for which Obama used his veto power to override. Congress, however, managed enough votes to override the veto.

The lawsuits may sour strong relations and between the U.S. and one of its closest allies in the Middle East according to experts.

Analysts warn that the lawsuits could hurt Saudi oil giant Aramco's initial public offering (IPO) next year. The world's biggest oil company could decide to list its with markets in London, Hong Kong or Tokyo, instead of New York, analysts warn.

Aramco's market value could reach $2 trillion after its IPO -- three times more than Apple, the world's largest company by market capitalization.