Bank of America settles Epstein lawsuit for $72.5 million

• Judge Rakoff had ruled in January that Bank of America must face claims it knowingly benefited from Epstein's sex trafficking and obstructed federal trafficking victim protections
• The plaintiffs' attorneys may seek up to 30% of the settlement amount ($21.8 million) in legal fees, with a court hearing scheduled for Thursday to consider approval
• The lawsuit alleged BofA ignored suspicious financial transactions related to Epstein, including payments from Leon Black (Apollo Global Management co-founder) who paid Epstein $158 million for tax and estate planning services

Bank of America Settles Epstein Lawsuit for $72.5 Million

Key Development:

Bank of America has agreed to pay $72.5 million to settle a class-action lawsuit brought by women who accused the bank of facilitating sexual abuse by Jeffrey Epstein. The settlement, disclosed March 27, requires approval from U.S. District Judge Jed Rakoff, with a hearing scheduled for Thursday.

Background:

The lawsuit, filed in October by a plaintiff using the pseudonym Jane Doe, alleged that America's second-largest bank ignored suspicious financial transactions related to Epstein, prioritizing profits over victim protection. In January, Judge Rakoff ruled the bank must face claims that it knowingly benefited from Epstein's sex trafficking and obstructed the federal Trafficking Victims Protection Act.

Key Transactions:

Among the flagged transactions were payments to Epstein from Apollo Global Management co-founder Leon Black, who paid Epstein $158 million for tax and estate planning services. Black stepped down as Apollo's CEO in 2021 and has denied wrongdoing.

Comparative Settlements:

The same legal team previously secured significantly larger settlements from other banks: $290 million from JPMorgan Chase and $75 million from Deutsche Bank in 2023. A similar lawsuit against Bank of New York Mellon was dismissed in January and is under appeal.

Financial Details:

Plaintiffs' attorneys David Boies and Bradley Edwards may seek up to 30% of the settlement (approximately $21.8 million) in legal fees. The bank maintained it "did not facilitate sex trafficking crimes" while acknowledging the settlement allows closure for both parties.

Context:

Epstein died in August 2019 in a Manhattan jail cell while awaiting sex trafficking charges; his death was ruled a suicide.