Key Points:
- Bank of America agreed to pay $72.5 million to settle a class-action lawsuit accusing the bank of facilitating Jeffrey Epstein’s sex trafficking.
- The lawsuit claims the bank ignored suspicious financial transactions related to Epstein because it prioritized profits over the protection of potential victims.
- A federal judge must still approve the settlement agreement, with a court hearing currently scheduled for next Thursday to review the terms.
- This payout follows similar multibillion-dollar legal battles in which JPMorgan Chase paid $290 million, and Deutsche Bank paid $75 million to settle related claims.
Bank of America will pay $72.5 million to settle a civil lawsuit brought by women who accused the institution of helping Jeffrey Epstein commit sexual abuse. Court records filed on Friday revealed the final amount after lawyers told U.S. District Judge Jed Rakoff earlier this month that they had settled the principal. The bank and the victims’ legal team kept the specific financial terms secret until now, but the public now knows the bank will pay millions to resolve these serious allegations.
Judge Jed Rakoff still needs to grant final approval before the deal becomes official. He scheduled a court hearing for next Thursday to listen to arguments and decide whether to sign off on the agreement. The class-action lawsuit, which began in October, featured a woman using the pseudonym Jane Doe. She accused the second-largest bank in the United States of ignoring a “plethora” of warning signs regarding Epstein’s criminal activities. Her lawyers argued that the bank prioritized its own profits while turning a blind eye to the horrific abuse occurring under its nose.
Bank of America consistently fought the accusations throughout the legal process. Its representatives argued that Doe’s claims amounted to nothing more than a list of routine services provided to clients who had no known connections to Epstein at the time. The bank called the idea that it played a deeper role in the trafficking “threadbare and meritless.” Despite this firm denial, the bank chose to settle the case rather than continue the battle in court.
The legal fight reached a significant turning point in January when Judge Rakoff ruled that the case could proceed to trial. He decided the bank must face claims that it knowingly benefited from sex trafficking and obstructed the enforcement of the Trafficking Victims Protection Act. The lawsuit specifically highlighted payments made to Epstein by Leon Black, the billionaire co-founder of Apollo Global Management. Records showed that Black paid Epstein $158 million for tax and estate-planning services. Black later stepped down from his role at Apollo in 2021 after an outside law firm reviewed his ties to the financier. Black has denied any wrongdoing, stating clearly that he remained unaware of Epstein’s criminal conduct.
This settlement adds another massive chapter to the ongoing legal saga involving those who enabled Epstein. Jane Doe’s legal team has pursued several major financial institutions over the past few years. In 2023, they secured a $290 million settlement from JPMorgan Chase and a $75 million settlement from Deutsche Bank. Not every bank has faced the same outcome, however. Lawyers are currently appealing Judge Rakoff’s January decision to dismiss a similar lawsuit they brought against the Bank of New York Mellon.
Jeffrey Epstein died in a Manhattan jail cell in August 2019 while waiting for his trial on federal sex trafficking charges. The New York City medical examiner ruled his death a suicide, ending the criminal case against the financier himself. While Epstein can no longer face justice, these civil lawsuits continue to hold major corporations accountable for their financial relationships with him. As the court prepares for Thursday’s hearing, the $72.5 million settlement serves as a final, high-cost reminder of the bank’s past dealings with one of the most infamous criminals in recent history.
