Bank of America settles $105m Epstein-related sex trafficking lawsuit with victims
Consensus Summary
Bank of America has agreed to a $105.3 million settlement with victims of Jeffrey Epstein’s alleged sex trafficking, avoiding trial in a class action lawsuit filed by Jane Doe. The case alleges the bank ignored suspicious financial transactions linked to Epstein, prioritizing profit over protecting victims, and obstructed enforcement of the Trafficking Victims Protection Act. Judge Jed Rakoff ruled in January 2024 that Bank of America must face these claims, though he emphasized not all entities in Epstein’s orbit should be held liable. The settlement, which could cover 60–75 victims, includes potential legal fees of up to $21.8 million and follows similar settlements with JPMorgan Chase ($290 million) and Deutsche Bank ($75 million). Bank of America maintains it did not facilitate sex trafficking but sought closure for accusers. The final approval hearing is scheduled for August 27, with plaintiffs’ lawyers appealing a dismissed lawsuit against Bank of New York Mellon. The case highlights broader legal scrutiny of Epstein’s financial enablers, including Leon Black’s $158 million payments to Epstein, which led to his resignation from Apollo Global Management.
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Key details reported by multiple sources:
- Jeffrey Epstein died in a federal jail in Manhattan on August 10 2019 while awaiting trial on sex trafficking charges; his death was ruled a suicide by New York City’s medical examiner
- A class action lawsuit was filed in October 2023 by a woman using the pseudonym Jane Doe against Bank of America, alleging the bank facilitated Epstein’s sex trafficking by ignoring suspicious financial transactions
- US District Judge Jed Rakoff ruled in January 2024 that Bank of America must face claims it knowingly benefited from Epstein’s sex trafficking and obstructed enforcement of the Trafficking Victims Protection Act
- Bank of America agreed to a $72.5 million ($105.3 million AUD) settlement with Epstein victims, with final approval scheduled for August 27 2024 in a hearing before Judge Rakoff
- The plaintiffs’ lawyers (David Boies and Bradley Edwards) expect between 60 and 75 victims to submit claims, with up to 30% of the settlement ($21.8 million) potentially allocated for legal fees
- Jane Doe’s lawyers have previously secured settlements of $290 million with JPMorgan Chase and $75 million with Deutsche Bank for Epstein-related claims
- Leon Black, Apollo Global Management’s billionaire co-founder, paid Epstein $158 million for tax and estate planning; Black stepped down as CEO in 2021 after an outside law firm review
Points of Difference
Details reported by only one source:
- Judge Rakoff explicitly stated he would continue to scrutinize the settlement until final approval, warning that not everyone associated with Epstein should be held liable
- Bank of America’s statement in Article 1 emphasized the bank did not facilitate sex trafficking crimes but valued closure for accusers
- The first article mentions a January ruling by Judge Rakoff requiring Bank of America to face claims of obstructing the Trafficking Victims Protection Act
- Article 1 includes a direct quote from Judge Rakoff: 'It's not fair to penalise those persons or entities that were drawn into his wide orbit but had no role in assisting or benefiting from his egregious misconduct'
- The first article notes the plaintiffs’ lawyers are appealing Judge Rakoff’s dismissal of a similar lawsuit against Bank of New York Mellon
Contradictions
Conflicting information between sources:
- Article 1 states the settlement amount is $72.5 million (USD) which converts to $105.3 million (AUD), while Article 2 states the settlement is $72.5 million (USD) and $105.3 million (AUD) without specifying which currency is primary
- Article 1 mentions the August 27 hearing is to consider final approval, while Article 2 states the hearing is scheduled for 'Thursday' (no specific date provided)
- Article 1 claims Bank of America was accused of ignoring suspicious transactions related to Epstein, while Article 2 includes Bank of America’s rebuttal that Jane Doe’s allegations were 'threadbare and meritless'
- Article 1 does not mention Leon Black’s specific $158 million payment to Epstein, while Article 2 explicitly details this payment and Black’s denial of wrongdoing
- Article 1 does not reference the joint court filing by David Boies and Bradley Edwards stating the settlement was the best option for clients, while Article 2 includes this detail
Source Articles
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Bank of America agrees to pay $105 million to settle Epstein-related lawsuit
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