Bank of America has agreed to pay $72.5 million to settle a civil lawsuit brought by women who accused the bank of enabling sexual abuse and sex trafficking linked to convicted pedophile Jeffrey Epstein.
The settlement was disclosed in court filings on Friday and still requires approval by a federal judge.The lawsuit was filed in October in U.S. District Court in Manhattan by a plaintiff using the alias Jane Doe on behalf of herself and others who claim they were abused by Epstein. They alleged that the bank ignored suspicious financial transactions linked to Epstein and continued to provide services that helped support his criminal activities.
Bank of America has denied that it facilitated or participated in sex trafficking or that it was deeply involved in Epstein’s crimes. In a statement, a spokesperson said the bank “did not facilitate sex trafficking crimes,” adding that the settlement would help “put the matter behind us and provide more closure for the plaintiffs.”
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The judge was informed of the terms of the settlement in advance, with lawyers for both sides telling US District Judge Jed Rakoff earlier this month that they had reached a “settlement in principle.”
Specific details remained secret until Friday, when they were announced. The deal still must be reviewed and formally approved in court, and a hearing on that approval is expected in the coming weeks.The settlement represents the best option for women who suffered harm many years ago and need financial relief now, the plaintiffs’ attorneys said in court filings. Under the terms, the attorneys may receive up to 30% of the settlement for legal fees, which could total about $21.8 million.The case formed part of a broader series of legal actions against major financial institutions over their ties to Epstein. Separate lawsuits against other banks, including JPMorgan Chase and Deutsche Bank, previously resulted in settlements of $290 million and $75 million, respectively, on related claims.Epstein was a financier and convicted sex offender who died in prison in 2019 while awaiting trial on federal sex trafficking charges. The civil lawsuits against the banks allege that the financial institutions helped sustain his operations by providing banking services despite regulatory warnings and red flags about his behavior.The settlement does not involve any admission of liability on the part of Bank of America, and the bank said it will continue to defend its actions in this case.