In a written opinion explaining his January 29 decision, U.S. District Judge Jed Rakoff concluded that allegations accusing Bank of America of recklessly disregarding information that the late financier Jeffrey Epstein engaged in sex trafficking are adequate to permit two claims to proceed.
Judge Rakoff addressed a proposed class action brought by an accuser identified as Jane Doe, who asserts the bank knowingly profited from Epstein’s alleged sex trafficking and obstructed enforcement of the federal Trafficking Victims Protection Act. The judge allowed two claims to move forward against Bank of America but dismissed four other claims in the complaint. He also dismissed all claims in a similar lawsuit brought against Bank of New York Mellon.
Bank of America, which is headquartered in Charlotte, North Carolina, said it looked forward to a full review of the facts. Lawyers for the accusers did not immediately respond to requests for comment after market hours.
The opinion, which runs 42 pages, explains why Judge Rakoff found that Doe had plausibly alleged non-routine assistance by the bank to Epstein. According to the ruling, Doe "plainly alleges" that Bank of America provided services that went beyond ordinary account maintenance, effectively treating Epstein as a "premier" client and enabling large transfers of funds.
Judge Rakoff wrote that the complaint alleges the bank had "every reason to know" about Epstein’s involvement in the transfers and in sex crimes. The judge said Doe plausibly alleged that the bank "turned a blind eye" to media reports about Epstein and failed to probe how large sums moved through an account alleged to be owned by an impoverished young woman, a reference to Doe herself.
The ruling also notes that one Bank of America employee, formerly a banker for Epstein at other institutions, reportedly had "direct personal knowledge" of Epstein’s sex trafficking. Judge Rakoff indicated that such an employee could provide a basis for civil liability for the bank under the allegations set forth in the complaint.
Bank of America had argued that the plaintiff at best alleged the bank provided routine services to wealthy clients connected to Epstein, and that Doe did not show the bank intentionally obstructed law enforcement. Judge Rakoff did not resolve the ultimate merits of the surviving claims in his opinion.
Doe, who resides in Florida, alleged that Bank of America and Bank of New York Mellon continued to do business with Epstein until his July 2019 arrest because profit motives outweighed protecting victims. Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges; New York City’s medical examiner later ruled the death a suicide.
The opinion also notes prior settlements reached by Doe’s lawyers on behalf of other accusers. In 2023, plaintiffs secured a $290 million settlement with JPMorgan Chase and a $75 million settlement with Deutsche Bank, with neither bank admitting wrongdoing as part of those settlements.
A trial on the remaining claims is scheduled to begin on May 11.
Legal posture and next steps
Judge Rakoff’s decision permits further litigation on two specific claims against Bank of America while removing other counts from the docket and clearing Bank of New York Mellon of the claims in the similar suit. The ruling leaves open factual and legal disputes that will be addressed at trial, and it stops short of any determination on liability.