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JPMorgan Chase (JPM) has reached a preliminary agreement to settle a lawsuit with victims of Jeffrey Epstein, a wealthy financier and convicted sex offender. The lawsuit accused the bank of disregarding warnings about Epstein’s illicit activities and enabling his alleged sex trafficking. The case was filed last year by an anonymous woman identified as Jane Doe, who claimed to have been sexually abused by Epstein and received payments from him through JPMorgan. The settlement, subject to court approval, remains undisclosed in terms of its details. JPMorgan expressed its belief that the settlement serves the best interests of all parties involved, particularly the survivors who suffered unimaginable abuse at Epstein’s hands.
David Boies, the lawyer representing the victims, commended the historic recoveries obtained from banks involved with Epstein and stated that the settlement marked a significant victory for justice and the survivors. Boies also mentioned that, respecting the bank’s request, the number of victims covered by the settlement would not be disclosed at present.
However, the settlement does not fully resolve JPMorgan’s legal challenges concerning Epstein. The bank is still facing a lawsuit filed by the government of the US Virgin Islands, which alleges that JPMorgan facilitated Epstein’s sex trafficking. Additionally, JPMorgan is suing its former executive Jes Staley, who had a professional relationship with Epstein while leading the bank’s asset-management unit. The bank claims that Staley misled its executives regarding Epstein, while Staley’s lawyers deny the allegations and assert his lack of knowledge about Epstein’s crimes.
Last month, Deutsche Bank paid $75 million to settle a similar lawsuit with Epstein’s victims. Notably, Deutsche Bank began providing financial services to Epstein in 2013, subsequent to JPMorgan severing its ties with him.
Jeffrey Epstein, previously convicted in 2008 for soliciting a minor for prostitution, was arrested in 2019 on charges of child sex trafficking and later died in prison in an apparent suicide.
The settlement announcement in one of the JPMorgan lawsuits follows a recent deposition in which JPMorgan CEO Jamie Dimon faced inquiries about his knowledge of Epstein’s relationship with the bank during Epstein’s status as a long-standing customer. Dimon repeatedly stated that he never met Epstein or had any direct conversations with him. He further claimed no recollection of being informed about Epstein by any of his executives.
During the deposition, it was revealed that Dimon was unaware of a 2011 email from the bank’s general counsel, Stephen Cutler, advising that Epstein should not be a client. The email, sent to two top executives reporting to Dimon, expressed that Epstein was not an honorable person and should not maintain a banking relationship with JPMorgan. Dimon asserted that he was unaware of the message at the time but became aware of it subsequently.
Following Dimon’s deposition, a lawyer representing the plaintiffs requested a follow-up deposition to address a newly produced document from the bank that was considered highly relevant to the case.
JPMorgan acknowledged that any association with Epstein was a mistake and expressed regret, emphasizing that the bank would not have continued doing business with him had they believed he was exploiting their services for criminal activities.
