Stock Markets March 2, 2026

Shareholders File Class Action, Allege Apollo Hid Extensive Epstein Ties

Complaint in Manhattan federal court says Apollo and co-founders denied business relationships with Jeffrey Epstein in 2021-22 filings as stock lost roughly $12 billion in market value

By Leila Farooq APO
Shareholders File Class Action, Allege Apollo Hid Extensive Epstein Ties
APO

Shareholders have launched a proposed class action against Apollo Global Management and its co-founders, alleging the firm and senior executives misled investors for nearly five years by denying business dealings with Jeffrey Epstein. The complaint, filed in Manhattan federal court, claims regulatory statements in 2021 and 2022 were false and that disclosure failures contributed to a roughly 15% decline in Apollo shares over three weeks in February, erasing about $12 billion in market capitalization.

Key Points

  • Investors filed a proposed class action in Manhattan federal court alleging Apollo and co-founders Leon Black and Marc Rowan concealed business ties with Jeffrey Epstein and made false statements in 2021-22 regulatory filings.
  • Shareholders say Apollo's stock fell about 15% over three weeks in February, erasing approximately $12 billion in market value as alleged ties became public.
  • The case references a January 2021 Dechert review that reported Black paid Epstein $158 million for tax and estate planning, the Department of Justice's January 30 release of documents related to Epstein, and calls for SEC investigation by teachers unions. Affected sectors include alternative asset managers, private lending, and the software businesses financed by these firms.

Shareholders have sued Apollo Global Management and its billionaire co-founders, Leon Black and Marc Rowan, in a proposed class action filed in Manhattan federal court, accusing the private capital firm of concealing business connections with Jeffrey Epstein.

The complaint, brought on behalf of investors led by Solomon Feldman, alleges that regulatory filings in 2021 and 2022 contained false denials that Apollo ever did business with Epstein. According to the investors, Epstein "was heavily involved and frequently communicated with Apollo Global's senior leadership" about the company's affairs during the 2010s.

Plaintiffs say disclosure failures damaged shareholders after new materials became public in late January. The suit asserts that Apollo's share price slid about 15% over a three-week span in February, reducing the firm's market value by roughly $12 billion as the alleged ties came to light.

Representatives for Apollo and chief executive Marc Rowan declined to comment. Whit Clay, a spokesperson for Leon Black, also declined to comment. The filings note that Rowan succeeded Black as chief executive in 2021.

In a February 18 letter to clients, Apollo stated that, other than Black, neither Rowan nor anyone else at the firm had a business or personal relationship with Epstein. The letter also acknowledged that in "select instances" Rowan and other Apollo employees supplied information to Epstein connected to Epstein's tax work for Black. Apollo asserted that when Epstein attempted to obtain work from other Apollo co-founders, he was "declined at every turn." Leon Black has denied wrongdoing and said he was unaware of Epstein's criminal conduct.

The complaint highlights a January 2021 review by the Dechert law firm, which reported that Black paid Epstein $158 million for tax and estate planning. Shareholders cite that review, and allege Apollo's public statements that the firm had never retained Epstein for services and that Epstein never invested in Apollo-managed funds were misleading.

Plaintiffs argue those assurances proved inaccurate after the U.S. Department of Justice on January 30 released a substantial cache of documents, videos and images relating to Epstein. The complaint references media reports alleging written and in-person communications between Epstein and Apollo officials in the mid-2010s, and it notes that teachers unions have called on the U.S. Securities and Exchange Commission to open an investigation into Apollo.

Although the proposed class period begins in May 2021 - after Black stepped down as Apollo's chief executive and chairman - the complaint alleges Black remains liable as a "control person" given a reported 7% ownership stake in Apollo as of April 2025.

The decline in Apollo's share price in February coincided with a broader, months-long selloff among large alternative asset managers. Investors in the sector have expressed concern about growth prospects, underwriting standards in private lending, and the potential for artificial intelligence to disrupt software businesses that these firms have financed or acquired.

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


Legal posture and next steps

The shareholders' complaint seeks class status and asserts claims tied to allegedly false and misleading statements in regulatory filings. It relies in part on the Dechert review, the materials released by the Department of Justice, and contemporary media reporting. The filing also points to external pressure for regulatory scrutiny, including requests from teachers unions that the SEC investigate Apollo.

Market and sector context

The lawsuit unfolded against the backdrop of a stressed alternative asset management sector, where concerns about growth, private lending practices, and asset-level technology risk have weighed on valuations. Plaintiffs contend the newly public material altered investor perceptions of Apollo's governance and disclosures, producing the February market reaction documented in the complaint.

Risks

  • Ongoing legal exposure and potential damages from the class action could affect Apollo's shareholder value and governance stability - impact concentrated in the alternative asset management sector.
  • Regulatory scrutiny, including possible SEC investigation prompted by union demands and public document releases, could lead to further reputational and compliance costs for Apollo and peers in private equity and asset management.
  • Broader investor concerns about sector fundamentals - including growth prospects, underwriting standards in private lending, and technology disruptions affecting portfolio companies - may continue to pressure valuations across alternative asset managers.

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