Bank of America agrees to pay $72.5 million to settle a lawsuit from Jeffrey Epstein’s accusers, avoiding a trial over claims it facilitated his sex trafficking.
NEW YORK: Bank of America has agreed to pay $72.5 million to settle a civil lawsuit from women who accused it of facilitating their sexual abuse by Jeffrey Epstein.
The terms of the deal were disclosed in a court filing on Friday, following an earlier announcement this month that a “settlement in principle” had been reached.
A bank spokesperson stated the resolution allows them to put the matter behind them. “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.
Plaintiffs’ attorneys David Boies and Bradley Edwards said the settlement was the best option for their clients. They noted in a joint filing that it provides needed financial relief for class members who suffered harm many years ago.
The lawyers may seek up to 30% of the settlement, approximately $21.8 million, for legal fees according to court records.
The settlement now requires approval from U.S. District Judge Jed Rakoff, who has scheduled a hearing for Thursday to consider the deal.
The proposed class action was filed in October by a woman using the pseudonym Jane Doe. It accused the bank of ignoring suspicious financial transactions related to Epstein because it valued profit over protecting victims.
Bank of America had previously argued that Doe alleged merely that it provided routine services to people with no known links to Epstein at the time. It called any suggestion of deeper involvement “threadbare and meritless.”
Judge Rakoff ruled in January that the bank must face claims it knowingly benefited from Epstein’s sex trafficking. The ruling also stated it must face claims it obstructed enforcement of the federal Trafficking Victims Protection Act.
Among the transactions flagged were payments to Epstein by Apollo Global Management’s billionaire co-founder, Leon Black. Black stepped down as Apollo’s CEO in 2021 after a review found he had paid Epstein $158 million for tax and estate planning.
Black has denied any wrongdoing and said he was unaware of Epstein’s criminal conduct.
Doe’s lawyers have previously reached settlements with other banks on behalf of Epstein’s accusers. They secured $290 million from JPMorgan Chase and $75 million from Deutsche Bank in 2023.
The legal team is also appealing Rakoff’s dismissal in January of a similar lawsuit they brought against Bank of New York Mellon.
Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges. New York City’s medical examiner ruled his death a suicide.
