Bank of America will pay $72.5M to settle lawsuit by Epstein victims
Bank of America agreed to a $72.5 million settlement with victims of Jeffrey Epstein’s sex trafficking, while denying any wrongdoing.Summary
Bank of America has reached a $72.5 million settlement to resolve a class-action lawsuit brought by women alleging they were victims of Jeffrey Epstein’s sex trafficking operation. The bank maintains it did not facilitate sex trafficking crimes, but the settlement covers victims abused between 2008 and 2019. The lawsuit accused Bank of America of ignoring warning signs regarding Epstein’s activities and failing to file suspicious activity reports promptly. A key aspect of the case involved transactions totaling $170 million paid by billionaire Leon Black to Epstein through a Bank of America account.
This settlement follows similar agreements by JPMorgan Chase ($290 million) and Deutsche Bank ($75 million) with Epstein victims, with all three banks avoiding admission of liability and criminal charges. While the $72.5 million figure is not financially material to Bank of America, the settlement resolves a significant reputational risk for the institution.
The settlement requires court approval and will distribute funds to victims after legal fees are deducted. Attorneys for the plaintiffs estimate at least 60 women were victimized during the relevant period. The case highlights a pattern of banks processing transactions for Epstein despite alleged red flags, ultimately choosing to settle rather than face trial.
(Source：Thestreet)