Bank of America has agreed to a $72.5 million settlement in a civil lawsuit brought by women who accused the bank of facilitating their sexual abuse by Jeffrey Epstein, according to court records. Lawyers representing both the bank and the plaintiffs informed U.S. District Judge Jed Rakoff in Manhattan earlier this month that they had reached a settlement in principle; however, the specific terms were not disclosed until recently. Bank of America is a multinational investment bank and financial services company headquartered in Charlotte, North Carolina. It provides a range of banking, investment, asset management and other financial and risk management products and services to individuals, small- and middle-market businesses and large corporations.
A spokesperson for Bank of America stated, ‘While we stand by our prior statements made in the filings in this case, including that Bank of America did not facilitate sex trafficking crimes, this resolution allows us to put this matter behind us and provides further closure for the plaintiffs.’ Attorneys for the plaintiffs, David Boies and Bradley Edwards, jointly filed that the settlement was the best option for their clients, considering the many years since the harm suffered and the current need for financial relief.
The plaintiffs’ lawyers may seek up to 30% of the settlement amount, approximately $21.8 million, to cover legal fees. Judge Rakoff has scheduled a court hearing for Thursday to consider approving the proposed settlement. The original class action lawsuit, filed last October, alleged that Bank of America disregarded suspicious financial transactions linked to Epstein, prioritising profit over the protection of victims, despite ample information regarding his crimes.
Bank of America previously stated that the plaintiff only alleged routine services were provided to individuals with no known ties to Epstein at the time, dismissing any further involvement as ‘threadbare and meritless.’ Similar lawsuits against JPMorgan Chase and Deutsche Bank resulted in settlements of $290 million and $75 million, respectively, in 2023. An appeal is underway regarding the dismissal of a similar lawsuit against Bank of New York Mellon. Jeffrey Epstein died in 2019 while awaiting trial on sex trafficking charges.
