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By Jenna Sundel
News Reporter
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Bank of America settled a lawsuit filed by women who accused the bank of facilitating their sexual abuse by Jeffrey Epstein, court records showed on Monday.
Why It Matters
Epstein, a financier and convicted sex offender, was found dead in a cell in New York's Metropolitan Correctional Center in August 2019 while awaiting trial on sex trafficking charges. His death was ruled a suicide.
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Epstein had social connections with many prominent people, including President Donald Trump and former President Bill Clinton. Neither has been accused of any wrongdoing in relation to Epstein, with Trump saying his relationship with him ended years before his death.
Last year, Trump signed the Epstein Files Transparency Act, compelling the Department of Justice to release its investigative files on Epstein.
What To Know
Attorneys for the bank and the women informed U.S. District Judge for the Southern District of New York Jed Rakoff during a phone call last week that they had reached a "settlement in principle," according to a court filing. The terms of the settlement are unclear, and the judge must approve the settlement before it is finalized.
The proposed class action lawsuit was filed in October of last year by a woman using the pseudonym Jane Doe. The lawsuit accused the bank of ignoring suspicious financial transactions related to Epstein, despite having information about his crimes. The lawsuit also alleged that the bank prioritized profits over the protection of victims.
Bank of America has said it was providing routine services to individuals who had no known link to Epstein at the time, and any allegations of further involvement were "threadbare and meritless."
Rakoff ruled in January that Bank of America must face Doe's claims that it obstructed enforcement of the federal Trafficking Victims Protection Act.
The lawsuit mentions payments to Epstein by Apollo Global Management's co-founder, Leon Black, who stepped down as the company's chief executive after an external review found that he had paid Epstein $158 million for tax and estate planning. Black has denied any wrongdoing. He was scheduled to be deposed by lawyers for Bank of America and Doe on March 26, but it is not expected to go forward because of the settlement.
Doe's lawyers have also sued other companies for their alleged role in Epstein's sex trafficking, including JPMorgan Chase, resulting in a $290 million class action settlement, and Deutsche Bank, resulting in a $75 million class action settlement.
What People Are Saying
Sigrid McCawley, a lawyer for the women, said in a statement: "Today’s resolution of the case against Bank of America is one more step on the road to much deserved justice."
A spokesperson for Bank of America declined comment to Reuters.
What Happens Next
A scheduled May 11 trial will not take place if Rakoff approves the settlement.
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