A federal judge in Manhattan stated on Thursday that he would grant final approval to a $72.5 million class-action settlement between Bank of America and women who accused the institution of facilitating sexual abuse by the late Jeffrey Epstein. U.S. District Judge Jed Rakoff announced the decision during a hearing, noting that the settlement provides many victims with compensation he characterized as substantial and "justice, even if partial." The lawsuit is one of several accusing Epstein's banks of ignoring suspicious financial transactions for concern they might lose his business.
The lawsuit was led by a Florida resident identified as Jane Doe, who stated she was sexually abused by Epstein at least 100 times between 2011 and 2019. Doe alleged that Epstein's money was wired repeatedly into and out of her Bank of America accounts. These transactions reportedly took place after Epstein had pleaded guilty to a Florida state prostitution charge in 2008 and became a registered sex offender. Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on federal sex trafficking charges; his death was ruled a suicide.
During the hearing, Judge Rakoff rejected objections from three accusers who argued the settlement was overbroad because it required them to waive related claims against the bank and other potential defendants without compensation. The judge also dismissed arguments that the settlement should not cover individuals with claims materially different from those of the lead plaintiff. Bank of America, which agreed to the settlement in March, has denied facilitating any sex trafficking crimes.
The settlement affects a class of women who were victims of Jeffrey Epstein and held or were connected to accounts at Bank of America. While the total settlement is $72.5 million, the source did not report the specific number of eligible claimants or the exact per-person distribution amount. This legal action follows similar settlements by other financial institutions reached in 2023, including a $290 million agreement with JPMorgan Chase and a $75 million agreement with Deutsche Bank.
For the victims involved, the final approval marks the transition from litigation toward the disbursement of funds. The settlement resolves claims that the second-largest U.S. bank facilitated abuse by allowing Epstein to move money despite his status as a registered sex offender. With the judge's verbal confirmation on Thursday, the court is expected to formalize the order, clearing the way for the settlement to proceed according to the agreement reached in March.