Libya offers $2.7 billion Lockerbie settlement

Libya has offered $2.7 billion to compensate families of the 270 victims of Pan Am Flight 103, which exploded over Lockerbie, Scotland, in 1988, a law firm representing families said yesterday.

The explosion killed 259 mostly American passengers and crew, and 11 residents of Lockerbie. One Libyan defendant was convicted and a second was acquitted of the mid-air bombing.

If Libya`s offer is accepted by the families, each of the them would receive $10 million, said a statement e-mailed to the press by the law firm for 118 of the families.

"These are uncharted waters," said Jim Kreindler, of Kreindler & Kreindler, a member of the plaintiffs committee.

"It is the first time that any of the states designated as sponsors of terrorism have offered compensation to families of terror victims."