Bank of America to Pay $72.5m to Settle Lawsuit by Epstein Victims

WEB DESK: Bank of America has agreed to a $72.5m (£57.3m) settlement to resolve a civil lawsuit brought by women who accused the financial institution of facilitating their sexual abuse by the late financier Jeffrey Epstein.

The deal, revealed in court filings on Friday, follows similar high-profile settlements involving other major global banks linked to Epstein’s financial network, according to the Express Tribune.

While the bank continues to deny any wrongdoing, a spokesperson stated that the resolution allows the firm to “put this matter behind us” and provides closure for the plaintiffs.

The settlement still requires the formal approval of US District Judge Jed Rakoff, with a hearing scheduled for Thursday.

Allegations of ignoring red flags

The class-action lawsuit, originally filed by an anonymous plaintiff known as Jane Doe, alleged that the second-largest bank in the United States ignored a “plethora” of suspicious transactions linked to Epstein.

The plaintiffs argued that the bank prioritised profit over the protection of victims, failing to act on financial signals that pointed toward sex trafficking crimes.

In January, Judge Rakoff ruled that the bank must face claims that it knowingly benefited from Epstein’s activities and obstructed the enforcement of the Trafficking Victims Protection Act.

Among the transactions scrutinised were payments made to Epstein by billionaire Leon Black, the co-founder of Apollo Global Management, who previously stepped down from his role following revelations of his financial ties to the disgraced financier.

Legal precedent and financial relief

Lawyers representing the survivors, including David Boies and Bradley Edwards, noted that the settlement represents the most viable path forward for victims, many of whom suffered harm years ago and require immediate financial assistance.

Under the proposed terms, the legal team may seek up to 30pc of the total settlement approximately $21.8m to cover legal fees.

This payout follows a pattern of significant settlements involving Epstein’s former banking partners. In 2023, JPMorgan Chase agreed to a $290m settlement, while Deutsche Bank paid $75m to resolve similar claims.

Despite these settlements, Bank of America maintained in its filings that it provided only “routine services” to individuals who, at the time, had no public links to Epstein’s criminal enterprise.