Bank of America agrees to pay US$72.5 million to settle Epstein accusers’ lawsuit

The Bank of America logo is seen on a branch office, Oct. 14, 2022, in Boston. (AP Photo/Michael Dwyer, File)

Bank of America agreed to pay US$72.5 million to settle a civil lawsuit brought by women who accused the bank of facilitating their sexual abuse by Jeffrey Epstein, court records showed on Friday.

Lawyers for the bank and the women had told Manhattan-based U.S. District Judge Jed Rakoff this month they had reached a “settlement in principle,” but terms of the deal were not disclosed at the time.

“While we stand by our prior statements made in the filings in this case, including that Bank of America did not facilitate sex trafficking crimes, this resolution allows us to put this matter behind us and provides further closure for the plaintiffs,” a spokesperson for Bank of America said in a statement.

In a joint court filing, David Boies and Bradley Edwards, attorneys for the plaintiffs, said the settlement represented the best option for their clients “given that many Class Members suffered harm many years ago and are in need of financial relief now.”

The plaintiffs’ lawyers may seek up to 30 per cent of the settlement, or about $21.8 million, for legal fees, according to court records.

The settlement requires Rakoff’s approval. The judge scheduled a court hearing for Thursday to consider approving the deal.

The proposed class action, filed in October by a woman using the pseudonym Jane Doe, accused the second-largest U.S. bank of ignoring suspicious financial transactions related to Epstein despite a “plethora” of information about his crimes because it valued profit over protecting victims.

Bank of America has said Doe alleged merely that it provided routine services to people who at the time had no known links to Epstein, and that any suggestion that it was more deeply involved was “threadbare and meritless.”

Rakoff ruled in January that Bank of America must face Doe’s claims that it knowingly benefited from Epstein’s sex trafficking and obstructed enforcement of the federal Trafficking Victims Protection Act. Among the transactions Doe flagged were payments to Epstein by Apollo Global Management’s billionaire co-founder, Leon Black.

Black stepped down as Apollo’s chief executive in 2021 after a review by an outside law firm found he had paid Epstein $158 million for tax and estate planning.

Black has denied wrongdoing and said he was unaware of Epstein’s criminal conduct.

Doe’s lawyers have also sued other alleged enablers of Epstein’s sex trafficking, and in 2023 reached settlements of $290 million with JPMorgan Chase JPM.N and $75 million with Deutsche Bank on behalf of his accusers.

The lawyers are also appealing Rakoff’s dismissal in January of a similar lawsuit they brought against Bank of New York Mellon.

Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges. His death was ruled a suicide by New York City’s medical examiner.

If you or someone you know is struggling with sexual assault or trauma, the following resources are available to support people in crisis:

• Call 911 if you are in immediate danger or fear for your safety.
• The Canadian Association of Sexual Assault Centres' website has a comprehensive list of sexual assault centres in Canada that offer information, advocacy and counselling. 
• The Ending Violence Association of Canada‘s website has links to helplines, support services and locations across Canada that offer sexual assault kits.
• Indian Residential School Survivors Society crisis lines: [phone] or [phone] (24/7)
• Toronto Rape Crisis Centre crisis line: [phone] (24/7)
• Canadian Human Trafficking Hotline: [phone] (24/7)
• Trans Lifeline: [phone]
• Suicide Crisis Helpline: call or text 988 (24/7)
• Sexual Misconduct Support and Resource Centre for current and former Canadian Armed Forces members: [phone]
• Read about your rights as a victim on the Canadian Resource Centre for Victims of Crime website.