Bank of America Agrees to $72.5 Million Settlement in Jeffrey Epstein Sex Trafficking Lawsuit
Bank of America has agreed to pay $72.5 million to settle a class action lawsuit brought by women who accused the bank of facilitating the sex trafficking operation of Jeffrey Epstein. The proposed agreement, which does not include an admission of wrongdoing by the bank, awaits approval from U.S. District Judge Jed Rakoff in Manhattan. This settlement marks the fourth instance of a major bank reaching an agreement with Epstein's accusers.
Settlement Details
On March 12, lawyers for both Bank of America and the plaintiffs informed Judge Rakoff of a "settlement in principle." Court records confirm the $72.5 million settlement, which was documented in a New York federal court filing. Legal papers regarding the settlement are scheduled for submission by March 27, with a court hearing set for April 2 to consider its approval.
The settlement funds are designated for "all women who were sexually abused or trafficked by Jeffrey Epstein, or by any person who is connected to or otherwise associated with Jeffrey Epstein or any Jeffrey Epstein sex-trafficking venture, between June 30, 2008, and July 6, 2019."
Attorneys involved in the case have identified at least 60 women who were victimized within this timeframe. Lawyers for the plaintiffs may seek up to 30 percent of the settlement, approximately $21.8 million, for legal fees.
Lawsuit Allegations
The class action lawsuit, filed in October by a woman identified as Jane Doe, alleged that Bank of America disregarded suspicious financial transactions linked to Epstein despite information about his criminal activities. The suit claimed the bank overlooked "numerous red flags" of improper financial dealings, assisted Epstein in establishing the financial structure for his alleged sex-trafficking operation, and prioritized profit over victim protection.
Specific allegations included that the bank overlooked payments ranging from $158 million to $170 million made by billionaire financier Leon Black from a bank account to Epstein, ostensibly for "tax and estate planning advice."
The plaintiff stated she was coerced into a "cult-like life" by Epstein between 2011 and 2019, during which she was sexually abused. Allegations included that Epstein paid her rent and income from a fabricated job through a Bank of America account and leveraged her immigration status.
Bank of America's Response
A spokesperson for Bank of America stated that the resolution provides closure for the plaintiffs and allows the bank to move past the issue. The bank reiterated its stance that it did not facilitate sex trafficking crimes and maintained its prior statements that Ms. Doe's claims focused on the provision of routine services to individuals with no known ties to Epstein at the time, describing any suggestion of deeper involvement as unfounded.
Judicial Context
In January, Judge Rakoff ruled that Bank of America must address Ms. Doe's claims that it knowingly benefited from Epstein's sex trafficking and obstructed enforcement of the federal Trafficking Victims Protection Act. This ruling pertained to transactions flagged, including payments to Epstein by Leon Black.
Involvement of Leon Black
Leon Black, co-founder of Apollo Global Management, was identified as a "critical witness" in the case, though he was not a defendant. His scheduled deposition for March 26 is not expected to proceed if the settlement is approved. Black resigned as Apollo's chief executive in 2021 following an external review that found he had paid Epstein $158 million for tax and estate planning services. Black has denied wrongdoing and stated he was unaware of Epstein's criminal activities.
A committee report from Apollo's board in 2021 concluded that Epstein advised Black on personal estate planning and tax issues, finding "no evidence" of Black's involvement in Epstein's alleged criminal activities.
Justice Department documents from investigations into Epstein show Black's name appearing 8,200 times, a figure that may include duplicates.
Statements from Parties
Sigrid McCawley, a lawyer representing Epstein's accusers, stated that the Bank of America settlement represents "one more step on the road to much-deserved justice." David Boies and Bradley Edwards, who also represent the plaintiffs, indicated in a joint court filing that the settlement is the best option for their clients, many of whom suffered harm years ago and require financial relief now.
Related Legal Actions
Lawyers for Ms. Doe have also pursued legal action against other alleged facilitators of Epstein's sex trafficking. In 2023, settlements totaling $290 million were reached with JPMorgan Chase and $75 million with Deutsche Bank on behalf of Epstein's accusers. Additionally, the plaintiffs' lawyers are appealing Judge Rakoff's January dismissal of a similar lawsuit against Bank of New York Mellon.
Background
Jeffrey Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on sex-trafficking charges. His death was officially ruled a suicide.