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 from a federal judge.The lawsuit was filed in October in the United States District Court in Manhattan by a plaintiff using the pseudonym Jane Doe on behalf of herself and others who allege they were abused by Epstein. They claimed that the bank ignored suspicious financial transactions tied to Epstein and continued to provide services that helped support his criminal activities.
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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 will help “put the matter behind us and provide further closure for the plaintiffs”.The terms of the settlement were reported to a judge in advance, with lawyers for both sides telling US District Judge Jed Rakoff earlier this month that they had reached a “settlement in principle.” The specific details remained under seal until Friday, when they were made public. The deal must still be reviewed and formally approved in court, and a hearing on that approval is expected in the coming weeks.Attorneys for the plaintiffs said in court filings that the settlement represents the best option for women who suffered harm many years ago and are in need of financial relief now. Under the terms, lawyers may receive up to 30 per cent 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 relationships with 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 jail in 2019 while awaiting trial on federal sex trafficking charges. The civil lawsuits brought against banks allege that financial institutions helped sustain his operations by providing banking services despite regulatory warnings and red flags about his conduct.The settlement does not involve any admission of liability by Bank of America, and the bank has said it will continue to defend its actions in the case.
