Bank of America Wins Court Approval for $72.5 Million Epstein Settlement

NEW YORK, Aug. 27 (Reuters) — A federal judge on Thursday indicated that he would give final approval to Bank of America’s $72.5 million settlement in a class-action lawsuit brought by women who alleged that the bank enabled the sexual abuse committed by the late financier Jeffrey Epstein.

U.S. District Judge Jed Rakoff said during a Manhattan hearing that the agreement would offer many survivors “substantial” financial compensation and a measure of justice, although he acknowledged that the relief would be incomplete. He dismissed objections from three plaintiffs who argued that the settlement was too broad because it would prevent them from pursuing related claims against Bank of America and other possible defendants without receiving additional compensation.

Rakoff also rejected their contention that the settlement should exclude allegations that differed significantly from those brought by the case’s lead plaintiff, who is identified under the pseudonym Jane Doe.

Doe, who lives in Florida, said she was residing in Russia when she first encountered Epstein. According to her lawsuit, Epstein sexually abused her more than 100 times from 2011 through 2019. She also alleged that he repeatedly paid her as part of his sex-trafficking operation, with funds transferred into and out of accounts she held at Bank of America.

The case is among several lawsuits alleging that financial institutions failed to act on questionable transactions connected to Epstein because they were reluctant to jeopardize their relationship with him as a customer.

Some of the transactions took place after Epstein pleaded guilty in Florida in 2008 to a prostitution-related offense and was subsequently required to register as a sex offender.

Attorneys representing Epstein’s accusers previously secured settlements in 2023 totaling $290 million from JPMorgan Chase and $75 million from Deutsche Bank.

When Bank of America agreed to the $72.5 million settlement in March, the bank maintained that it had not facilitated Epstein’s sex-trafficking activities.

Epstein died in a Manhattan jail in August 2019 while awaiting trial on federal sex-trafficking charges. The New York City medical examiner determined that he died by suicide.