A U.S. judge granted preliminary approval on Thursday to Bank of America’s $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.
David Boies, a lawyer for the plaintiffs, said he expected between 60 and 75 victims to submit claims. The victims are mainly based in the United States or Eastern Europe, he said. The plaintiffs’ lawyers may seek up to 30% of the settlement, or about $21.8 million, for legal fees.
What Did the Judge Say About the Settlement?
Rakoff said it was important for Epstein’s victims to be compensated by anyone that unlawfully facilitated his sex trafficking, but that not everyone associated with him should be held liable.
“It’s not fair to penalize those persons or entities that were drawn into his wide orbit but had no role in assisting or benefiting from his egregious misconduct,” Rakoff said, without referring to specific people or entities. The judge also warned that he would continue to scrutinize the case. “I do want to just keep everyone on notice that I continue to scrutinize this until the moment of final settlement,” he said.
What Were the Allegations Against Bank of America?
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. The lawsuit claimed the bank 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.
What Did Bank of America Say?
In agreeing to settle the civil lawsuit in March, Bank of America said it did not facilitate sex trafficking crimes. The bank said the resolution would allow it to move on and provide closure for the accusers. “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,” a bank spokesperson said at the time.
How Does This Compare to Other Epstein-Related Settlements?
Boies and Bradley Edwards, another lawyer for the plaintiffs, said the settlement was the best option for their clients because they suffered harm many years ago and need financial relief now. Doe’s lawyers have also sued other alleged enablers of Epstein’s sex trafficking.
In 2023, they reached settlements of $290 million with JPMorgan Chase and $75 million with Deutsche Bank on behalf of Epstein’s accusers. The lawyers are also appealing Rakoff’s dismissal in January of a similar lawsuit they brought against Bank of New York Mellon.
What Happens Next?
The August 27 hearing will determine final approval of the settlement. Judge Rakoff indicated he would continue to review the terms until that time. 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.
FAQs: Bank of America Epstein Settlement
Q: How much is Bank of America paying?
A: The bank agreed to pay $72.5 million to settle the civil lawsuit.
Q: How many victims are expected to submit claims?
A: Between 60 and 75 victims, mainly based in the US or Eastern Europe, according to plaintiffs’ lawyer David Boies.
Q: How much can lawyers seek in fees?
A: Plaintiffs’ lawyers may seek up to 30% of the settlement, about $21.8 million.
Q: What did the judge say about the case?
A: Judge Rakoff stated that victims need compensation but cautioned that not everyone involved with Epstein should be held accountable.
Q: What other banks have settled similar lawsuits?
A: JPMorgan Chase settled for $290 million and Deutsche Bank for $75 million in 2023.
Q: When is the final approval hearing?
A: August 27, 2026.
Disclaimer: This information is based on inputs from news agency reports. TSG does not independently confirm the information provided by the relevant sources.
