JP Morgan Chase reaches settlement with victims of Jeffrey Epstein’s abuse
Lawsuit claims that officials at the bank ignored warning signs about Epstein’s abuse because he was a wealthy client
Edward Helmore in New York
Mon 12 Jun 2023 18.30 BST
JP Morgan Chase has announced a tentative settlement in a legal claim brought by a woman who said that the US banking giant knowingly benefited from sexual abuse that she and others suffered at the hands of disgraced financier Jeffrey Epstein.
The value of the settlement for a class of plaintiffs that has grown to encompass as many as 100 women or more is placed at $290m, said a source familiar with the terms.
“We all now understand that Epstein’s behavior was monstrous, and we believe this settlement is in the best interest of all parties, especially the survivors, who suffered unimaginable abuse at the hands of this man,” JP Morgan said in a statement. “Any association with him was a mistake and we regret it. We would never have continued to do business with him if we believed he was using our bank in any way to help commit heinous crimes.”
The proposed deal could begin to shut down weeks of embarrassing leaks about the extensive relationship that the bank had with Epstein, where the convicted sex offender was a client from 1998 to 2013 – seven years after he was first accused of soliciting a minor.
The lawsuit claims that officials at the bank ignored warning signs about Epstein’s abuse because he was a wealthy client who could introduce wealthy people to its private banking and investment arms.
A previous agreement in a similar lawsuit against Deutsche Bank was resolved for a reported $75m. According to reports, the number of Epstein victims attached to the JPMorgan action could rise to more than 100.
“The settlements that have been reached are both life-changing and historic for the survivors,” said victims’ attorney Sigrid McCawley of the law firm Boies Schiller Flexner. “Money, which for far too long flowed with impunity between Jeffrey Epstein’s global sex-trafficking enterprise and Wall Street’s leading banks, is decisively being used for good.
“The settlements signal that financial institutions have an important role to play in spotting and shutting down sex trafficking,” McCawley added.
Separately, Brad Edwards, attorney for other, unidentified claimants in the litigation, said he recognized “the importance of the government’s continued litigation against JPMorgan Chase to prevent future crimes”.
While some of the law firms representing the plaintiffs were working pro bono, or under a percentage split of any settlement, Judge Jed Rakoff has yet to award legal costs ahead of any finalized settlement.
https://www.theguardian.com/business/20 ... tein-abuse