At 22.40 hours on 5 April 1945 the unescorted Atlantic States (Master Edgar Leroy Lindenmuth) was just two hours out of port off Cape Cod, when she was hit by a torpedo from U-879 on the starboard side at the stern. The explosion blew the screw and the rudder off and wrecked the steering engines. The ship settled rapidly by the stern and the watch below secured the engines as water entered the engine room. 10 minutes later, without a means to steer the ship, the master ordered the most of the nine officers, 36 men and 12 armed guards (the ship was armed with one 5in, one 3in and eight 20mm guns) to the four lifeboats. The master, the chief mate, the radio operator, the armed guard officer and one able seaman stayed on board and opened valves in the pump room to trim the vessel. At 23.10 hours, the armed guards left as the seas began breaking over the well deck.

Those who had abandoned ship were picked up by the harbor patrol vessel USS Guinevere (IX 67) and landed at Boston the next day. USS Richard S. Bull (DE 402) stood by to assist the tanker and to prevent further attacks. The rescue tugs USS ATR-14 and USS ATR-89, with the help of USS Wandank (ATO 26), towed the ship back to Boston. At 7 April, she was docked, repaired and returned to service.