Bank of America Agrees to $72.5 Million Settlement in Epstein Sex Trafficking Lawsuit
Bank of America has agreed to a $72.5 million settlement in a civil class-action lawsuit brought by women who accused the bank of facilitating Jeffrey Epstein's sex trafficking operation. The agreement, which does not include an admission of wrongdoing by the bank, awaits approval from U.S. District Judge Jed Rakoff.
Settlement Details
A "settlement in principle" was announced to Manhattan-based U.S. District Judge Jed Rakoff on March 12 by lawyers representing both Bank of America and the plaintiffs. Court records later confirmed the $72.5 million figure. Legal documents detailing the settlement are scheduled to be submitted by March 27, with a court hearing set for April 2 to consider its approval.
If approved, the settlement funds are designated for "all women who were sexually abused or trafficked by Jeffrey Epstein, or by any person who is connected to or otherwise associated with Jeffrey Epstein or any Jeffrey Epstein sex-trafficking venture, between June 30, 2008 and July 6, 2019."
Attorneys involved in the case have identified at least 60 women victimized by Epstein within this timeframe. Plaintiffs' lawyers may seek up to 30 percent of the settlement, approximately $21.8 million, for legal fees.
Allegations Against Bank of America
The proposed class action, filed in October by a woman identified as Jane Doe, alleged that Bank of America disregarded suspicious financial transactions linked to Epstein despite available information about his crimes. The suit claimed the bank prioritized profit over protecting survivors and assisted Epstein in establishing the necessary financial structure for his alleged sex-trafficking operation. Among the transactions highlighted were payments made to Epstein by Leon Black, co-founder of Apollo Global Management.
In January, Judge Rakoff ruled that Bank of America must address Doe's claims that it knowingly benefited from Epstein's sex trafficking and obstructed the federal Trafficking Victims Protection Act. The lawsuit also included a plaintiff's account detailing experiences of sexual abuse between 2011 and 2019, alleging Epstein used a Bank of America account to pay rent and income from a fabricated job, and leveraged her immigration status as a means of control.
Bank's Position
Bank of America has maintained that it did not facilitate sex trafficking crimes. The bank previously argued that Doe's allegations primarily concerned the provision of routine services to individuals with no known ties to Epstein at the time, and that any deeper involvement claims were unfounded. Following the settlement, a spokesperson for Bank of America stated that the resolution provides closure for the plaintiffs and allows the bank to move past the issue, reiterating its stance that it did not facilitate sex trafficking crimes.
Leon Black's Involvement
Leon Black, though not a defendant in the lawsuit, was identified as a critical witness. His scheduled deposition for March 26 and a trial set for May 11 are not expected to proceed if the settlement receives court approval. Black resigned as Apollo's chief executive in 2021 following an external review that found he had paid Epstein $158 million for tax and estate planning services. Black has maintained his innocence, stating he was unaware of Epstein's criminal activities.
An Apollo board committee report in 2021 concluded that Epstein advised Black on personal estate planning and tax issues but found no evidence of Black's involvement in Epstein's alleged criminal activities. Justice Department documents from investigations into Epstein indicate Black's name appeared 8,200 times, a figure that may include duplicates.
Context and Related Settlements
This settlement marks the fourth instance of a major bank reaching an agreement concerning allegations related to Jeffrey Epstein. In 2023, settlements totaling $290 million were reached with JPMorgan Chase and $75 million with Deutsche Bank on behalf of Epstein's accusers. Lawyers for the plaintiffs are also appealing Judge Rakoff's January dismissal of a similar lawsuit against Bank of New York Mellon.
Jeffrey Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on sex-trafficking charges. His death was officially ruled a suicide.
Statements from Parties
Sigrid McCawley, a lawyer representing the women, stated that the resolution against Bank of America marks "one more step on the road to much-deserved justice."
David Boies and Bradley Edwards, who also represent the plaintiffs, indicated in a joint court filing that the settlement is the best option for their clients, given that many suffered harm years ago and require financial relief now.
Senator Ron Wyden, a Democrat on the Senate Finance Committee, described the settlement as a "step towards justice and a vindication of my staff's investigation into how major Wall Street banks enabled Epstein's crimes," adding that the bank "willfully looked the other way" regarding Black's large wire transfers to Epstein.