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German government-appointed experts on Friday gave the green light to the restitution of one of the most valuable artworks in the trove of late collector Cornelius Gurlitt to its American owners.

Art experts mandated by Berlin to comb Mr. Gurlitt's collection for Nazi loot said that "Two Riders on the Beach," a 1901 Max Liebermann painting, was looted during World War II and rightfully belonged to the heirs of David Friedmann, a German-Jewish collector who died in the early 1940s. The family is currently suing the Bavarian government for its return.


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