By Rosemary
A federal judge in Manhattan has granted preliminary approval to a $72.5 million settlement between Bank of America and a group of women who accused the financial institution of enabling abuse tied to convicted sex offender Jeffrey Epstein. The decision marks a significant step in ongoing efforts by victims to seek accountability from institutions alleged to have facilitated Epstein’s activities.
U.S. District Judge Jed Rakoff approved the preliminary agreement on Thursday and scheduled a hearing for August 27 to determine whether the settlement should receive final approval. His ruling allows the case to move forward while maintaining judicial oversight over the terms and fairness of the agreement.
David Boies, a lawyer representing the plaintiffs, indicated that between 60 and 75 victims are expected to file claims under the proposed settlement. According to Boies, the majority of those eligible to participate are based in the United States and Eastern Europe. Legal representatives for the plaintiffs may request up to 30% of the settlement amount—approximately $21.8 million—to cover attorneys’ fees.
In his remarks, Rakoff emphasized the importance of ensuring that victims of Epstein’s abuse receive compensation from parties that may have unlawfully contributed to or enabled his operations. At the same time, he cautioned against assigning liability too broadly, noting that not all individuals or entities connected to Epstein played a role in his misconduct or benefited from it. The judge underscored that the court would continue to closely examine the settlement before granting final approval.
The agreement, first reached in March, stems from a class-action lawsuit filed in October by a woman identified under the pseudonym Jane Doe. The complaint alleged that Bank of America ignored a pattern of suspicious financial transactions associated with Epstein, despite what the lawsuit described as extensive evidence of his criminal behavior. The plaintiffs argued that the bank prioritized financial gain over its responsibility to prevent harm.
Earlier this year, Rakoff ruled that the bank must face claims asserting it knowingly benefited from Epstein’s sex trafficking activities and obstructed enforcement of federal anti-trafficking laws. The decision allowed the case to proceed, increasing legal pressure on the institution before it ultimately agreed to settle.
Bank of America has denied any role in facilitating Epstein’s crimes. In agreeing to the settlement, the bank stated that resolving the litigation would enable it to move forward while offering a measure of closure to those who brought the claims.
Epstein died in August 2019 while in custody at a Manhattan jail, where he had been awaiting trial on federal sex trafficking charges. His death was ruled a suicide by the New York City medical examiner, bringing an end to criminal proceedings against him but leaving a complex web of civil litigation in its wake.
The case against Bank of America is part of a broader legal campaign targeting financial institutions accused of enabling Epstein’s operations. Attorneys including Boies and Bradley Edwards have pursued similar claims against other major banks. In 2023, settlements totaling $290 million were reached with JPMorgan Chase and $75 million with Deutsche Bank on behalf of Epstein’s accusers.
The plaintiffs’ legal team has argued that settling offers a practical resolution for victims, many of whom suffered harm years ago and seek financial relief without prolonged litigation. Meanwhile, efforts continue to revive related claims, including an appeal challenging the dismissal of a similar lawsuit against Bank of New York Mellon.
As the August hearing approaches, the court’s final determination will be closely watched as another test of institutional accountability in one of the most far-reaching abuse scandals in recent history.
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