Court Orders Bank of America to Respond to Lawsuit Linked to Jeffrey Epstein

A Bank of America logo is displayed at one of its financial centers in New York City on July 11, 2023. A U.S. District Judge has ruled that Bank of America (BAC.N) must confront a portion of a class action lawsuit alleging the bank knowingly assisted Jeffrey Epstein's sex trafficking operations by providing financial services to the convicted financier. The ruling was made by U.S. District Judge Jed Rakoff in Manhattan, who also dismissed a parallel lawsuit against the Bank of New York Mellon (BK.N). Judge Rakoff has allowed Epstein’s victims to pursue claims against Bank of America, asserting that the bank benefited from Epstein’s criminal activities and obstructed the enforcement of the federal Trafficking Victims Protection Act. However, he dismissed four other claims, including allegations that the bank participated in and facilitated Epstein's trafficking activities, as well as accusations of negligence in protecting victims or refraining from providing “non-routine” banking services. Bank of New York Mellon successfully had the same six claims dismissed. The judge is expected to provide a detailed opinion by February 13, and a trial for Bank of America is slated for May 11. The bank expressed satisfaction with the narrowed scope of the lawsuit, indicating they look forward to a comprehensive examination of the facts. In contrast, BNY asserted its dismissal highlights its lack of involvement in Epstein’s offenses. These lawsuits were initiated in October by a woman referred to as Jane Doe, representing herself and other Epstein accusers. Doe contended that both banks prioritized profit over victim protection despite being aware of Epstein's wrongdoing prior to his arrest in July 2019. David Boies, representing Doe, expressed eagerness for the Bank of America trial and indicated plans to appeal the BNY decision. Previously, JPMorgan and Deutsche Bank settled lawsuits related to similar allegations, with JPMorgan agreeing to a $290 million settlement and Deutsche Bank settling for $75 million. Neither institution admitted any wrongdoing. Epstein was found deceased in a Manhattan jail in August 2019 while awaiting trial on sex trafficking charges, with the medical examiner ruling the death a suicide.