Bank Of America Agrees To Pay $72.5 Million To Settle Epstein Sex-Trafficking Lawsuit
Key Takeaways
- Bank of America will pay $72.5 million to settle Epstein sex-trafficking lawsuit.
- Allegations include ignoring red flags and continuing financial services for Epstein.
- Filed in New York federal court; settlement announced Friday evening.
Settlement breakthrough and court path
Bank of America has agreed to pay US$72.5 million to settle a class-action lawsuit alleging the bank facilitated Jeffrey Epstein’s sex-trafficking operation.
“Bank of America has reached a $72”
The deal remains subject to court approval by Judge Jed Rakoff, with a hearing scheduled for April 2 to consider approving the settlement.
Bank of America says it did not admit wrongdoing as part of the resolution.
The suit, filed on behalf of a Jane Doe and others, follows long-running disclosures about Epstein’s financial network and prior settlements with JPMorgan Chase and Deutsche Bank in 2023.
Settlement terms and fees
The lawyers may seek up to 30% of the settlement, about US$21.8 million, for legal fees.
The attorneys described the settlement as the best option given that harm occurred many years ago and plaintiffs now need financial relief.
The deal was framed as a settlement in principle reached earlier in March, with a judge’s eventual approval required.
The hearing date for approval was scheduled for early April.
Legal context and accusations
In January, Judge Rakoff ruled that Bank of America must face claims that it knowingly benefited from Epstein’s sex trafficking and obstructed enforcement of the Trafficking Victims Protection Act.
“- Bank of America settles Epstein accusers’ lawsuit, avoiding trial - Judge Rakoff ruled BofA must face claims of benefiting from Epstein’s trafficking - Doe’s lawyers settled with JPMorgan, Deutsche Bank for US$290 million (RM1”
The lawsuits claim BoA ignored red flags and provided banking and investment services to Epstein.
Broader implications and precedent
This is the latest in a string of settlements with Epstein enablers; JPMorgan Chase paid $290 million; Deutsche Bank $75 million in 2023.
The settlement underscores ongoing scrutiny of banks' roles in Epstein's network and the push for broader accountability.
JPMorgan's and Deutsche Bank's settlements paved the way for BoA's action.
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