Bank of America Reaches $72.5 Million Settlement with Epstein Accusers, Gets Initial Nod

Bank of America Reaches $72.5 Million Settlement with Epstein Accusers, Gets Initial Nod

NEW YORK, April 2 (Reuters) – A ​U.S. judge granted preliminary approval on Thursday to Bank of America’s (BAC.N), opens new tab $72.5 million ‌settlement with women who accused the bank of facilitating their sexual abuse by Jeffrey Epstein.

U.S. District Judge Jed Rakoff in Manhattan scheduled an August 27 hearing to consider final approval.

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.

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.

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.

In agreeing to settle the civil lawsuit in March, Bank of America said it ​did not facilitate sex trafficking crimes. It said the resolution would allow it to move on and provide ‌closure ⁠for the accusers.

Lawyers for the plaintiffs, David Boies and Bradley Edwards, said the settlement was the best option for their clients because they suffered harm many years ago and need financial relief now.

The plaintiffs’ lawyers may seek up to 30% of the settlement, or about $21.8 ​million, for legal fees.

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), opens new tab and $75 million with Deutsche Bank (DBKGn.DE), opens new tab on ​behalf of his accusers.