Bank of America has reached a tentative settlement in a lawsuit accusing the financial institution of facilitating Jeffrey Epstein’s sex trafficking operation by ignoring suspicious financial transactions. The proposed agreement was revealed in filings in Manhattan federal court, marking a significant step in the legal battle brought on behalf of Epstein’s victims.
The lawsuit, filed on behalf of a woman identified as Jane Doe and others similarly situated, accused Bank of America of turning a blind eye to Epstein’s illicit activities. It alleged that the bank ignored numerous “red flags” concerning improper financial dealings, including $170 million paid to Epstein by billionaire financier Leon Black for purported “tax and estate planning advice” through a Bank of America account. The suit contended that the bank “went far beyond what a non-complicit bank would have done and instead assisted Epstein in setting up the necessary financial structure to operate his sex-trafficking venture.”
Sigrid McCawley, a lawyer for the Epstein victims, stated that the settlement is “one more step on the road to much deserved justice.” She praised the “brave and fearless voices” of the survivors. While Bank of America declined to comment, the proposed settlement comes after the bank had previously urged the court to dismiss the lawsuit, calling the complaint “threadbare and meritless.”
This settlement with Bank of America follows similar agreements made by other major financial institutions. JP Morgan Chase previously agreed to pay $290 million, and Deutsche Bank settled for $75 million in lawsuits brought by Epstein’s accusers. The case also involved Leon Black, co-founder of Apollo Global Management, who stepped down as CEO amid scrutiny of his ties to Epstein. Black has denied any wrongdoing and stated he was unaware of Epstein’s criminal conduct. He was scheduled to be deposed as part of the case, but the settlement is expected to halt this.
Lawyers for both Bank of America and the plaintiffs informed a judge that they had reached a “settlement in principle.” The terms are not yet public and require approval from US District Judge Jed S. Rakoff. Lawyers are scheduled to submit further legal papers by March 27, with a court hearing set for April 2 to consider the approval of the deal. If approved, a trial scheduled for May 11 will not proceed.