Bank of America agrees to $72.5M Epstein settlement

Bank of America has agreed to pay $72.5 million to settle a proposed class-action lawsuit brought by women who said the bank facilitated their sexual abuse by Jeffrey Epstein, according to court records cited across several media reports.

The deal would resolve claims that the bank ignored warning signs in accounts connected to Epstein and people in his orbit, enabling the late financier’s sex-trafficking operation.

The settlement is still pending approval from US District Judge Jed Rakoff in Manhattan.

In a statement to Reuters and other news outlets, a Bank of America spokesperson said the bank is not changing its stance on the underlying allegations.

“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,” the spokesperson said.

Rakoff scheduled a hearing for Thursday to consider approving the proposed settlement, Reuters reported. NBC News separately reported the judge would hold a hearing in April to decide whether to approve the agreement.

The lawsuit was filed initially in October by a woman using the pseudonym Jane Doe, who reportedly claimed to have been abused by Epstein "on at least 100 occasions." That complaint alleged Bank of America had “a plethora of information regarding Epstein’s sex trafficking operation but chose profit over protecting the victims."

In counter-filings, the bank called the complaint “threadbare and meritless,” arguing it provided routine services to people who, at the time, had no known links to Epstein. 

Rakoff ruled in January that the bank must face claims that it knowingly benefited from Epstein’s sex trafficking and obstructed enforcement of the federal Trafficking Victims Protection Act.

Read more: Goldman Sachs’ senior executive steps down amid links to Epstein revealed in recent files release

Attorneys for the plaintiffs framed the settlement as a trade-off between certainty and the risks of extended litigation. In a joint court filing, lawyers David Boies and Bradley Edwards said the agreement 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,” Reuters reported. The settlement would also generate another set of fees questions: plaintiffs’ lawyers may seek up to 30% of the settlement – about $21.8 million – for legal fees.

NBC reported that the settlement class would cover women who were sexually abused or trafficked by Epstein, or by people connected to him, between June 30, 2008, and July 6, 2019. Attorneys representing survivors said at least 60 women were victimized during that period.

The case has also pulled in names beyond Epstein. One set of transactions flagged by the plaintiff involved payments to Epstein by Leon Black, the billionaire co-founder of Apollo Global. An outside-law-firm review previously found Black paid Epstein $158 million for tax and estate planning, and Black has denied wrongdoing and said he was unaware of Epstein’s criminal conduct.

Reports further describe additional transfers, including payments labeled as tax and estate planning advice, that plaintiffs alleged helped fund trafficking.

Read more: Class action accuses Apollo of hiding Epstein ties in SEC filings