JPM - JPMorgan reaches tentative settlement of lawsuit by Epstein victims

2023-06-12 08:15:20 ET

JPMorgan Chase ( NYSE: JPM ) on Monday reached a tentative settlement with sexual abuse victims of Jeffrey Epstein over its longstanding relationship with the financier, according to a media report.

The settlement will avert a trial that would have even more publicly aired embarrassing dislosures already made in the case. JPMorgan Chase ( JPM ) CEO Jamie Dimon answered questions during a deposition about two weeks ago, saying he had barely heard of Epstein before his arrest in July 2019 on sex trafficking charges.

The proposed agreement would settle a lawsuit filed in November in Manhattan federal court by an unidentified woman on behalf of victims who were sexually abused by Epstein at a time when they were teenage girls and young women. A statement from the bank and the lawyers representing the victims didn't disclose a settlement amount, the New York Times reported.

The "agreement in principle to settle" the lawsuit "is in the best interest in all parties, especially the survivors who were the victims of Epstein's terrible abuse," the statement said, according to the NYT.

The bank still faces a lawsuit by the government of the U.S. Virgin Islands, which remains the biggest outstanding Epstein-related case after years of civil lawsuits against Epstein's estate.

In the lawsuit being settled, the victims alleged that JPMorgan ( JPM ) ignored warnings for year that Epstein had been trafficking teenage girls and young women for sex. In 2008, the financier, in Florida case, had pleaded guilty in 2008 to soliciting prostitution from a teenage girl. The bank had Epstein as a client from about 1998 to 2013.

Court documents showed that JPMorgan ( JPM ) employees had filed many suspicious activity reports about large cash withdrawals made by Epstein and in 2006, the bank had flagged him as a "high risk client."

JPMorgan Chase ( JPM ) did not immediately respond to a request for comment.

Epstein killed himself in jail in 2019, while awaiting trial on criminal charges over his sexual abuse of teenage girls.

Last month, Deutsche Bank ( DB ), who also had Epstein as a client, agreed to pay $75M to settle a lawsuit by Epstein's victims. That bank was also ordered to pay $150M by New York state authorities over Epstein and a separate scandal over its ties with Danske Bank.

Last week, the Financial Times reported that Morgan Stanley ( MS ) started to cut ties with Crispin Odey after the newspaper published an investigation that brought new allegations of sexual harassment and assault against the hedge fund manager.

More on Banks and Epstein:

• JPMorgan alleges former exec Staley hampered efforts to cut Epstein ties
• Judge allows suits over JPMorgan, Deutsche Bank ties with Epstein to proceed
• JPMorgan sues former exec Jes Staley over ties to Epstein
• Barclays CEO Jes Staley steps down amid Epstein investigation
• Apollo CEO Leon Black stepped down after Epstein probe

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