JP Morgan to pay $290m in Epstein lawsuit settlement

JP Morgan is set to pay approximately US$290m to settle a lawsuit involving alleged victims of the convicted sex offender Jeffrey Epstein. The bank’s lawyers stated that the settlement was in the best interests of all parties, particularly the survivors who suffered from Epstein’s appalling abuse. The lawsuit claimed that JP Morgan, the largest US bank, overlooked red flags about Epstein during their 15-year relationship.

Although JP Morgan Chase will not admit liability in the case, the bank will issue a statement expressing regret for its association with Epstein upon the settlement’s approval, according to David Boies, one of the victims’ lawyers. In a statement on Monday, the bank’s lawyers said, “We all now understand that Epstein’s behaviour was monstrous. 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 settlement comes after a series of revelations about the extent of JP Morgan’s relationship with the late financier. In late January, long-time CEO Jamie Dimon provided a formal statement under oath for the case, resulting in a day-long deposition at the bank’s New York headquarters. Lawyers representing the accuser, known only as Jane Doe 1, requested on Friday that a federal judge allow them to take new testimony from Dimon and reopen depositions for three other key witnesses.

Another lawsuit filed against JP Morgan in federal court late last year is still pending, brought on behalf of the US Virgin Islands government, where Epstein owned a private island with a mansion. Between 1998 and 2013, Epstein held hundreds of millions of dollars in over 50 accounts at JP Morgan, even after pleading guilty to soliciting a minor for prostitution in 2008. In 2019, Epstein was found dead in his prison cell at the age of 66, with his death ruled a suicide by New York City’s medical examiner.

The Jane Doe 1 lawsuit alleged that JP Morgan “knowingly facilitated, sustained and concealed” Epstein’s frequent cash withdrawals to pay the young women he trafficked while profiting from the deals and clients he brought to the bank. The bank has argued that any civil liability should rest with Jes Staley, a former top executive who befriended Epstein. Staley has accused his former employer of attempting to “deflect blame” for its own failures and sought to dismiss the claims, but the complaint against him remains active.

Last month, Deutsche Bank, where Epstein was a client after leaving JP Morgan in 2013, settled for US$75m with Epstein accusers. To date, the Epstein estate has paid out more than US$150m to over 100 of his victims.