Victims who claim JPMorgan disregarded concerns about Epstein’s behavior and continued him as a customer would receive compensation under the agreement.
JPMorgan Chase and the woman’s attorneys announce in a joint statement that the US bank has reached an agreement in principle to resolve the class-action lawsuit filed by a Jeffrey Epstein victim.
In a class action lawsuit filed by a woman who claimed Epstein assaulted her, one claim against JPMorgan was settled on Monday.
Federal allegations alleging that the billionaire banker paid teenage girls hundreds of dollars in cash for massages before abusing them at his mansions in Florida and New York led to his arrest in 2019. On August 10 of that year, he was discovered dead in jail at the age of 66. His death was classified as a suicide by a coroner.
“Any association with him [Epstein] was a mistake, and we regret it,” JPMorgan stated. If we had thought that he was using our bank to aid in the commission of horrible crimes in any way, we would never have continued to do business with him.
According to The New York Times, which cited David Boies, the lead plaintiffs’ attorney, the proposed settlement would require the bank to pay $290 million to put the matter to rest.
In settling, JPMorgan Chase did not make an admission of guilt. According to Reuters news agency, a source with knowledge of the situation who spoke on the condition of anonymity was cited.
Epstein was a customer of JPMorgan from 1998 until he was let go in 2013, and even after his arrest on prostitution-related charges in 2006 and subsequent guilty plea two years later, the bank continued to employ Epstein.
Epstein was a client of Deutsche Bank from 2013 to 2018, and the bank just last month agreed to pay $75 million to resolve a similar complaint brought by women who claim the financier exploited them.
“The settlements signal that financial institutions have an important role to play in spotting and shutting down sex trafficking,” said Sigrid McCawley, an attorney for Jane Doe 1, the plaintiff in the lawsuit against JPMorgan.
An unusual public relations crisis for Jamie Dimon, the CEO of JPMorgan since 2006, is largely resolved by the settlement.
Dimon admitted under oath in May that he had little knowledge of Epstein before to the financier’s arrest in July 2019 and that he couldn’t recall talking about Epstein’s accounts with other bank employees, including those with the authority to sever Epstein’s relationship with the institution.
As a former close associate of Dimon, Staley was previously thought of as a potential CEO replacement.
Before Epstein was fired in 2013, Dimon claimed that he wanted Staley to quit JPMorgan because he was not managing the investment bank adequately. Epstein had no influence on Staley’s decision to leave.
According to documents recently made public in the complaint, Stephen Cutler, a former JPMorgan lawyer, asked the bank to sever its relationship with Epstein.