By John Ikani
JPMorgan Chase has reached a settlement in a class-action lawsuit brought by victims of Jeffrey Epstein’s sex trafficking scheme, with the bank agreeing to pay $290 million, according to the accusers’ lawyer. The lawsuit accused JPMorgan of providing financial services that facilitated Epstein’s abuse while willfully ignoring warning signs for the sake of profit.
While JPMorgan has consistently laid blame on Epstein himself for the atrocities committed, they assert that they cut ties with him as soon as they became aware of his wrongdoings. The settlement, which is subject to court approval, was disclosed by plaintiffs’ attorney David Boies, confirming the agreed amount of $290 million.
The resolution comes shortly after Deutsche Bank announced its own settlement in May, where the European institution agreed to pay $75 million to settle a similar litigation brought forth by one of Epstein’s victims.
The lawsuits have forced Wall Street banks to confront their complicity in the scandal surrounding Epstein, the disgraced financier who met his demise in prison in 2019.
The news of this settlement coincides with US District Judge Jed Rakoff granting class-action certification to the claims made by plaintiff Jane Doe 1 and others in a similar situation. Rakoff’s 30-page ruling affirmed that the victims collectively met the necessary criteria to be considered a class, as the case shared common elements of law and fact.
Plaintiffs’ attorney Sigrid McCawley from Boies Schiller Flexner praised the settlement as a pivotal step toward justice. McCawley emphasized the importance of holding financial institutions accountable in identifying and combating sex trafficking, asserting that the settlements signify the responsible use of funds previously involved in Epstein’s global sex trafficking enterprise.
JPMorgan Chase reiterated its regret over its association with Epstein, acknowledging the monstrous nature of his behaviour. A spokesperson for the bank stated, “We all now understand that Epstein’s behaviour was monstrous. Any association with him 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 to commit heinous crimes.”
While JPMorgan had initiated its banking services with Epstein as early as 1998, they only severed ties with him in 2013. The plaintiffs alleged that JPMorgan should have known about his actions since 2006 and still chose to keep him as a client. Litigation between JPMorgan and former executive Jes Staley is ongoing, as are the cases involving the US Virgin Islands, according to the joint statement released on Monday.
On Friday, the victims’ attorneys requested the court to compel a second round of testimony from JPMorgan Chase CEO Jamie Dimon. They alleged that the bank deliberately withheld documents before Dimon’s deposition on May 26, 2023, which impeded the effectiveness of their questioning.
Jeffrey Epstein, previously convicted in Florida in 2008 for soliciting young girls for massages, received a lenient sentence of just 13 months under a secret plea deal. While awaiting trial on charges of sex trafficking involving underage girls, Epstein tragically took his own life in a New York jail cell in August 2019 at the age of 66.
