There was no "sudden blow" to the case.
2008"Also muddying the waters are alleged assurances of immunity given to the guards by State Department diplomatic security agents investigating the incident before the FBI got involved.
The State Department said its agents did not offer blanket immunity from criminal prosecution but only promised that statements the guards made on the scene could not be used against them in any prosecution.
But when the investigation was turned over to the Justice Department to examine possible criminal activity, FBI agents discovered some guards believed they were immune from prosecution and therefore refused to be interviewed again, complicating the FBI probe.
Security contractors had immunity from Iraqi law under a provision put in place in the early days of the U.S.-led occupation of Iraq. But starting next year, under a U.S.-Iraq security agreement that Baghdad approved last week, Iraq will have the "primary right to exercise jurisdiction" over U.S. contractors and their employees."
From 1 month after the killings
October 2007"Potential prosecution of Blackwater guards allegedly involved in the shooting deaths of 17 Iraqi civilians last month may have been compromised because the guards received immunity for statements they made to State Department officials investigating the incident, federal law enforcement officials said yesterday."
and
"
State Department investigators offered Blackwater USA security guards immunity during an inquiry into last month’s deadly shooting of 17 Iraqis in Baghdad — a potentially serious investigative misstep that could complicate efforts to prosecute the company’s employees involved in the episode, government officials said Monday.
The State Department investigators from the agency’s investigative arm, the Bureau of Diplomatic Security, offered the immunity grants even though they did not have the authority to do so, the officials said. Prosecutors at the Justice Department, who do have such authority, had no advance knowledge of the arrangement, they added."
The outcome was expected...I dare say even counted on