JPMorgan has reached an agreement with a victim of sex trafficker Jeffrey Epstein to settle a class-action lawsuit which accused the bank of enabling his abuse of women and girls for over a decade.
The complaint—brought by a woman known as Jane Doe—had also accused one of the bank’s former executives, Jes Staley, of sexual assault. More than 100 women were expected to join the suit.
The financial giant announced the settlement on Monday morning, following Staley’s under-oath questioning over the weekend as part of the case. According to Doe’s lawyer, Brad Edwards, JPMorgan is prepared to pay $290 million to end the litigation.
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Edwards told The Daily Beast that Staley’s deposition “went very well and helped reach a terrific settlement for all of the survivors.”
Sigrid McCawley, another attorney for Jane Doe, called the settlements “both life-changing and historic for the survivors.”
“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,” McCawley said in a statement. “The settlements signal that financial institutions have an important role to play in spotting and shutting down sex trafficking.”
In a statement on Monday, JPMorgan announced that the parties “have reached an agreement in principle to settle the putative class action lawsuit related to Jeffrey Epstein’s crimes, which is subject to court approval” and pointed out that the government of the U.S. Virgin Islands’ related lawsuit against the bank could continue. The bank’s complaint against Staley, which seeks to hold him liable for Doe’s case, is also still pending.
“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,” JPMorgan said in a statement.
“Any association with him was a mistake and we regret it,” the bank continued. “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 bank declined, however, to disclose the settlement amount. David Boies, a lawyer for Doe and other victims, said earlier on Monday, “The bank has asked us not to reveal the number at this time, and that pending further discussions we are going to respect that request.” Boies later revealed the $290 million settlement to The New York Times.
Last month, Deutsche Bank agreed to pay $75 million to dozens of Epstein accusers in a similar suit and JPMorgan’s settlement is expected to be much higher. Epstein banked with JPMorgan from about 1998 to 2013 and with Deutsche from 2013 to 2018.
A spokesperson for the U.S. Virgin Islands’ Attorney General that it “will continue to proceed with its enforcement action to ensure full accountability for JPMorgan’s violations of law and prevent the bank from assisting and profiting from human trafficking in the future.”
Doe’s case was scheduled for trial in October. Her complaint, filed in Manhattan federal court, argued that Epstein’s scheme required a financial institution “that would allow him to constantly withdraw cash from his accounts without following anti-money laundering and reporting laws.”
“To put it plainly, Epstein needed a bank that knew he was engaging in illegal activity and did not care, which Epstein had in JP Morgan,” the lawsuit stated.
According to the complaint, Doe was a ballet dancer in New York when she met Epstein in 2006 and was sexually abused by him until her escape from his orbit in 2013. As part of the litigation, Doe has accused Staley of sexual assault using “aggressive force.”
The settlement arrives as JPMorgan faces scrutiny over its decision to continue banking with Epstein for more than a decade—despite employees raising red flags over the years due to his hefty cash withdrawals and media reports that he molested teenage girls.
Staley’s deposition followed the out-of-court grilling of JPMorgan CEO Jamie Dimon and asset and wealth management boss Mary Erdoes.
More information about Epstein’s sex ring and the late trafficker’s meetings with high-powered pals has come to light after Doe and the U.S. Virgin Islands government sued JPMorgan late last year.
As part of the litigation, Doe accused Staley of sexual assault and the public got a glimpse of the executive’s cryptic emails with Epstein, wherein they discussed Disney Princesses and “White Wine” and Staley told the sex offender he had few friendships “so profound.”
In his own sworn testimony, Dimon claimed he didn’t know who Epstein was until his July 2019 arrest for trafficking minors. (Epstein killed himself in jail while awaiting trial.)
Asked about one 2010 email from an Epstein staffer suggesting he was scheduled for a meeting with Epstein and Staley, Dimon testified, “I have never had an appointment with Jeff Epstein. I've never met Jeff Epstein. I never knew Jeff Epstein. I never went to Jeff Epstein's house. I never had a meal with Jeff Epstein. I have no idea what they’re referring to here.”
Staley, however, has argued that he discussed Epstein with Dimon after the perv’s 2006 arrest in Florida, after his 2008 guilty plea, and throughout 2012.
During Dimon’s deposition, Boies asked if there was “anything that you have not said today that you would like to say to the victims of Jeffrey Epstein?”
“I think I've already made a statement twice about how sorry I am to any woman that was hurt by this monstrous man,” Dimon testified. “It’s terrible. I hope you get justice against the people who perpetrated the crime, and so sorry it happened.”
In recent weeks, victims of Epstein sent letters to Erdoes and Dimon, demanding they own up to JPMorgan’s long-standing relationship with the convicted sex offender.
Courtney Wild, who was 14 when Epstein abused her, wrote to Erdoes: “JP Morgan was Epstein’s right hand in allowing him to become the most abusive sex offender in history.”
She added: “Does nobody at JP Morgan have a conscience?”
