In a move to quell ongoing litigation, JPMorgan Chase has consented to a settlement of approximately $290 million for a class action lawsuit brought by victims of Jeffrey Epstein, according to an undisclosed source. This resolution signifies a significant development in the legal proceedings concerning the bank's controversial ties with the disgraced financier.
On Monday, JPMorgan Chase, America's largest bank, made a joint declaration with the plaintiffs' attorneys, stating that a tentative agreement had been reached regarding the class action lawsuit. Despite agreeing to this substantial payout, the bank denied any misconduct.
JPMorgan stated, "Any association with Epstein was an error that we deeply regret. Had we been aware that he was exploiting our bank to facilitate his abhorrent crimes, we would have severed our business relations without hesitation."
The bank, however, is yet to reach a settlement in a lawsuit filed by the government of the U.S. Virgin Islands, where Epstein, owner of two adjacent islands, was allegedly involved in victimizing individuals within his estate.
The bank's continued business relations with Epstein despite his arrest on charges related to prostitution in 2006 and a subsequent guilty plea two years later are the primary allegations in the class action lawsuit. Epstein remained a client from 1998 till 2013, despite multiple internal warnings about his illicit activities.
The ongoing litigation involving former JPMorgan executive Jes Staley, who is accused of suppressing his knowledge about Epstein, is not impacted by this settlement. Staley has expressed regret over his association with Epstein but denies having knowledge of Epstein's sex trafficking activities. Staley's legal representatives did not respond to requests for comment.
This settlement comes on the heels of Deutsche Bank's agreement to pay $75 million last month to settle a comparable lawsuit involving Epstein, who was a client from 2013 to 2018.
"The settlements highlight the critical role financial institutions must play in identifying and preventing sex trafficking," stated Sigrid McCawley, legal representative of Jane Doe 1, one of the plaintiffs against JPMorgan.
Epstein, who was awaiting trial for sex trafficking charges, died in a Manhattan jail cell in August 2019 at 66. His death was ruled a suicide by New York City's medical examiner.
Jamie Dimon, JPMorgan's CEO since 2006, has been thrust into the public eye due to these controversies. In May, Dimon testified under oath that he was largely unaware of Epstein until his arrest in July 2019. He further asserted that Epstein's accounts were not a topic of discussion with bank officials who were in a position to terminate Epstein as a client.
The disclosure of court documents revealed that former JPMorgan counsel Stephen Cutler had recommended severing ties with Epstein, a suggestion that was met with resistance from other executives.
