Bank of America has settled a civil lawsuit filed by women who alleged the financial institution facilitated their sexual abuse by the late financier Jeffrey Epstein. Court records revealed the agreement on Monday, marking a significant development in the ongoing legal fallout from Epstein's crimes.
Details of the Settlement Agreement
Lawyers representing both Bank of America and the plaintiffs informed US District Judge Jed Rakoff during a telephone call on 12 March that they had reached a "settlement in principle." The specific terms of the settlement remain undisclosed at this time. The agreement requires formal approval from Judge Rakoff, who is based in Manhattan.
Legal Proceedings and Timeline
Attorneys for the involved parties are scheduled to submit legal documentation regarding the settlement by 27 March. A court hearing has been set for 2 April, during which Judge Rakoff will consider granting final approval to the deal. If approved, this settlement will avert a trial that was previously scheduled for 11 May.
Sigrid McCawley, a lawyer representing the women, issued a statement following the announcement. "Today's resolution of the case against Bank of America is one more step on the road to much-deserved justice," McCawley said. A spokesperson for Bank of America declined to comment on the settlement.
Background of the Lawsuit
The proposed class action lawsuit was initially filed in October by a woman using the pseudonym Jane Doe. The complaint accused Bank of America, the second-largest bank in the United States, of ignoring suspicious financial transactions linked to Epstein. The lawsuit alleged that the bank possessed a "plethora" of information regarding Epstein's criminal activities but chose to prioritise profits over protecting survivors.
Bank of America has consistently denied these allegations. The bank argued that Doe's claims merely involved providing routine banking services to individuals who, at the time, had no known connections to Epstein. Bank of America described any suggestions of deeper involvement as "threadbare and meritless."
Judge Rakoff's Previous Ruling
In a January ruling, Judge Rakoff determined that Bank of America must face Doe's claims. These allegations included that the bank knowingly benefited from Epstein's sex trafficking operations and obstructed enforcement of the federal Trafficking Victims Protection Act. Among the transactions highlighted in the lawsuit were payments made to Epstein by Leon Black, the billionaire co-founder of Apollo Global Management.
Leon Black stepped down as Apollo's chief executive in 2021 after an external law firm review revealed he had paid Epstein $158 million for tax and estate planning services. Black has denied any wrongdoing, stating he was unaware of Epstein's criminal conduct. Black had been scheduled to give a deposition under oath on 26 March, but this proceeding is not expected to proceed due to the settlement.
Broader Legal Context
This settlement is part of a wider legal effort targeting alleged enablers of Epstein's sex trafficking network. Lawyers representing Epstein's accusers have previously secured substantial settlements from other financial institutions. In 2023, they reached a $290 million settlement with JPMorgan Chase and a $75 million settlement with Deutsche Bank.
Jeffrey Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on federal sex-trafficking charges. The New York City medical examiner ruled his death a suicide. The resolution of this case against Bank of America represents another chapter in the pursuit of accountability for those who may have supported Epstein's illicit activities.
