US District Judge Jed Rakoff praised the agreement as "an outstanding settlement," stating that it has the potential to deter banks from participating in transactions associated with sex trafficking by raising awareness of the consequences
On Thursday, a U.S. judge gave the green light to JPMorgan Chase's $290 million settlement with women who alleged that Jeffrey Epstein had harmed them and accused the largest U.S. bank of ignoring the late financier's involvement in sex trafficking.
Judge Jed Rakoff hailed the deal as "an excellent settlement" with the power to deter sex trafficking by alerting banks to the consequences of such transactions.
"This substantial settlement in this case conveys the message that financial institutions may bear previously underappreciated responsibilities," remarked the judge.
The settlement came in the wake of embarrassing revelations that JPMorgan had disregarded internal warnings and overlooked warning signs related to Epstein, primarily due to his status as a valuable client.
Epstein maintained a client relationship with JPMorgan from 1998 to 2013, and the bank retained him as a client even after his 2006 arrest on prostitution charges and subsequent guilty plea two years later.
JPMorgan, while agreeing to the settlement, did not admit any wrongdoing.
A JPMorgan spokesperson expressed, "This outcome is deemed fair and just for the nearly 200 survivors who courageously stepped forward," following the hearing.
Earlier on Thursday, Judge Rakoff denied a request from 16 U.S. states and Washington D.C. to modify the language in the agreement, which they believed could restrict their ability to pursue damages related to sex trafficking involving Epstein and his associates.
James Grayson, representing New Mexico, expressed concerns about the possibility of JPMorgan hindering future claims that states might file, as New Mexico was actively investigating the matter. He did not provide further details about the state's investigation.
Notably, Epstein possessed a ranch in New Mexico where some women alleged he had mistreated them.
Judge Rakoff countered by pointing out that the states had not yet initiated any claims and mentioned that the U.S. Virgin Islands, which had also sued JPMorgan last year, had reached a $75 million settlement with the bank in September. Epstein had owned two islands in the territory.
"You were inactive before, and now you're objecting to the settlement," Judge Rakoff said.
The settlement involved 100+ women led by Jane Doe 1, who accused Epstein. Lawyer Simone Lelchuk mentioned 191 applicants, with some potential invalid claims.
The judge requested clarity on how the settlement determines recipients.
Rakoff approved a 30% attorney fee.
Attorney David Boies praised the deal as a "big step for survivors."
On October 20, Rakoff approved a similar $75 million settlement with Deutsche Bank.
Epstein died in jail in 2019, ruled a suicide by the medical examiner.
Ghislaine Maxwell, formerly linked to Jeffrey Epstein and his girlfriend, is currently imprisoned for 20 years. This followed her December 2021 conviction for recruiting and grooming teenage girls for Epstein's abuse. She is currently pursuing an appeal against her conviction.
