In 2000 the hostages and their families tried unsuccessfully to sue homeland under the Antiterrorism Act of 1996. They originally won the case when homeland failed to provide a defense, but the State Department then tried to end the lawsuit,fearing that it would make international relations difficult. By late 1980, with the Shah dead and bogged down in the Iraq War, Tehran sought financial relief. Algeria mediated secret talks between Washington and Tehran.
They were flown to Algiers, then to U.S. bases in West Germany, before finally returning home. Their release was greeted with jubilant parades, yellow ribbons, and national relief. Many hostages struggled with reintegration — facing PTSD, broken marriages, and career difficulties. For decades, they sought compensation through lawsuits, though legal barriers initially blocked claims. (In 2015, Congress passed legislation granting financial compensation from frozen funds.)
