Bank of America has agreed to settle a lawsuit brought by victims of Jeffrey Epstein, who accused the bank of facilitating his sex trafficking operation. The terms of the deal remain undisclosed and now go to court for approval.
Key Takeaways
Bank of America has reached a tentative settlement in a lawsuit alleging it facilitated Jeffrey Epstein's sex trafficking operation. The deal follows similar settlements by JP Morgan Chase and Deutsche Bank.
- Bank of America settles with Epstein victims, terms undisclosed
- Settlement prevents Leon Black from being deposed under oath
- Lawsuit alleged $170 million paid to Epstein through Bank of America accounts
- Judge Rakoff ruled bank must face claims it knowingly benefited from trafficking
- Court hearing scheduled for April 2 to approve settlement
The settlement marks the third such agreement by a major bank following previous settlements with JP Morgan Chase ($290 million) and Deutsche Bank ($75 million). Lawyers for both sides informed Judge Jed Rakoff on March 12 that they had reached a 'settlement in principle,' as reported by Reuters. The proposed class-action lawsuit, filed in October by a Florida woman using the pseudonym Jane Doe, alleged that Bank of America ignored suspicious financial transactions related to Epstein despite having extensive information about his crimes.
The lawsuit claimed that the bank chose profit over protecting victims and cited erratic banking behavior in accounts used by Epstein's team. It also pointed to more than $170 million paid to Epstein by billionaire Leon Black, co-founder of Apollo Global Management, through his Bank of America account. According to PBS, the payments were purportedly for 'tax and estate planning advice.' Black has denied wrongdoing and stated he was unaware of Epstein's criminal conduct.
The lawsuit alleged that Epstein paid Jane Doe's rent and income from a phony job through a Bank of America account, holding her immigration status over her head until she escaped after Epstein's death. The woman claimed she was coerced into a cult-like life with Epstein in 2011 and sexually abused by him on at least 100 occasions.
Bank of America had previously urged the court to dismiss the lawsuit, arguing that it provided routine services to people with no known links to Epstein at the time. However, Judge Rakoff ruled in January that the bank must face claims that it knowingly benefited from Epstein's sex trafficking and obstructed enforcement of the federal Trafficking Victims Protection Act.
According to The Guardian, lawyers for both sides are scheduled to submit legal papers about the settlement by March 27, with a court hearing set for April 2 to consider approving the deal. Sigrid McCawley, a lawyer representing the women, stated that this resolution is 'one more step on the road to much-deserved justice.' A spokesperson for Bank of America declined to comment.
The settlement will likely prevent Leon Black from being questioned under oath by lawyers for Doe and Bank of America. According to PBS, a trial set for May 11 will not proceed if Judge Rakoff approves the settlement, as the deposition was postponed due to the impending agreement.
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