Stock Markets March 16, 2026

Bank of America Reaches Settlement With Women Who Accused It of Facilitating Epstein Abuse

Proposed class action brought by a plaintiff using the pseudonym Jane Doe to be resolved pending judicial approval

By Leila Farooq BAC JPM DB APO
Bank of America Reaches Settlement With Women Who Accused It of Facilitating Epstein Abuse
BAC JPM DB APO

Bank of America has reached a settlement in a civil class action brought by women who alleged the bank facilitated Jeffrey Epstein’s sexual abuse. The suit, filed in October by a plaintiff identified as Jane Doe, alleged the bank ignored suspicious transactions tied to Epstein. A federal judge had earlier ruled that the bank must face claims that it knowingly benefited from Epstein’s trafficking and obstructed enforcement of the Trafficking Victims Protection Act. The settlement awaits approval from the presiding judge.

Key Points

  • Bank of America has reached a settlement in a proposed class action brought by a plaintiff identified as Jane Doe alleging the bank facilitated Jeffrey Epstein's abuse - impacts banking and legal sectors.
  • A federal judge had ruled earlier that Bank of America must face claims that it benefited from Epstein's trafficking and obstructed enforcement of the Trafficking Victims Protection Act - potential regulatory and reputational consequences for financial institutions.
  • Related litigation has produced major settlements in 2023 with other banks - $290 million with JPMorgan Chase and $75 million with Deutsche Bank - underscoring broader legal exposure across the banking industry and asset management links flagged by plaintiffs.

Bank of America has agreed to settle a civil lawsuit filed by women who say the bank enabled Jeffrey Epstein's sexual abuse, according to court records made public on Monday. The case had been brought as a proposed class action by a plaintiff identified only as Jane Doe in October.

In the complaint, Doe alleged that Bank of America ignored a "plethora" of information pointing to Epstein's criminal conduct and continued to process suspicious financial transactions because it prioritized profit over protecting victims. The bank responded that Doe's claims amounted only to an assertion that it provided routine banking services to individuals who at the time had no known connections to Epstein, and that any suggestion of a deeper role was "threadbare and meritless."

Manhattan-based U.S. District Judge Jed Rakoff had previously ruled in January that Bank of America must face Doe's allegations that the institution knowingly benefited from Epstein's sex trafficking and impeded enforcement of the federal Trafficking Victims Protection Act. The settlement remains subject to Rakoff's approval.

Doe's filings highlighted several transactions she considered suspicious, including payments to Epstein linked to Leon Black, the billionaire co-founder of Apollo Global Management. Black stepped down as Apollo's chief executive in 2021 after an outside law firm review concluded he had paid Epstein $158 million for tax and estate planning. Black has denied any wrongdoing and has said he was unaware of Epstein's criminal behavior.

Black had been scheduled to give testimony under oath on March 26 to lawyers representing Doe and Bank of America. That deposition is not expected to proceed because of the settlement. A trial that had been set for May 11 also will not occur if Judge Rakoff approves the agreement.

Doe's legal team has pursued litigation against other parties it says enabled Epstein's trafficking. In 2023, those lawyers reached settlements resolving claims on behalf of Epstein's accusers totaling $290 million with JPMorgan Chase and $75 million with Deutsche Bank.

Jeffrey Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges; New York City's medical examiner ruled his death a suicide.

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Risks

  • Judicial approval is required for the settlement to take effect - if the judge does not approve, litigation could proceed, creating continued legal and financial uncertainty for Bank of America - affects banking and legal services sectors.
  • Ongoing and related litigation involving other financial institutions and individuals may keep reputational scrutiny on banks and asset managers - could influence investor sentiment and compliance costs across the financial sector.
  • Key testimony and scheduled proceedings, such as the deposition of Leon Black and the planned trial date, were deferred by the settlement; if approvals fail or further suits are filed, those proceedings could resume and extend legal exposure - impacts asset management and legal advisory markets.

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