NEW YORK, June 12, 2023 – JPMorgan Chase has reached a settlement of approximately $290 million in a class-action lawsuit filed by victims of Jeffrey Epstein, a disgraced financier. The settlement resolves a significant portion of the litigation surrounding JPMorgan’s association with Epstein. The agreement comes after a series of revelations that the bank disregarded internal warnings and overlooked warning signs due to Epstein’s status as a valuable client.
Epstein was a client of JPMorgan from 1998 to 2013, even after his arrest in 2006 on prostitution-related charges and subsequent guilty plea in 2008. The settlement would resolve claims made by over 100 victims, led by a former ballet dancer known as Jane Doe 1, who have alleged abuse by Epstein when they were young women and teenagers.
The settlement sends a clear message across Wall Street and avoids a protracted legal battle. The settlement still requires approval from U.S. District Judge Jed Rakoff in Manhattan.
JPMorgan stated, “Any association with (Epstein) was a mistake, and we regret it. We would never have continued to do business with him if we believed he was using our bank in any way to help commit heinous crimes.” The bank did not admit wrongdoing as part of the settlement.
The recent settlement follows a similar agreement reached by Deutsche Bank (DBKGn.DE) three and a half weeks ago, in which the bank agreed to pay $75 million to Epstein’s victims.
The settlement amount of $290 million was confirmed by David Boies, a lawyer representing Epstein’s victims. Sigrid McCawley, another attorney representing the victims, highlighted the significance of these settlements in holding financial institutions accountable for spotting and preventing sex trafficking.
While this settlement marks progress, JPMorgan still faces legal challenges. The government of the U.S. Virgin Islands has filed a lawsuit against the bank for its role in facilitating Epstein’s activities on the islands he owned. JPMorgan is also pursuing legal action against former executive Jes Staley for his involvement in Epstein’s relationship with the bank and alleged concealment of information.
The settlement underscores the importance of financial institutions in addressing and preventing sex trafficking and signals a turning point for JPMorgan in moving forward from this chapter.
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