JPMorgan Chase to pay 290 million in settlement with Epstein sexual abuse accusers

A US judge on Monday (June 26) approved JPMorgan Chase' USD 290 million settlement with women who say Jeffrey Epstein abused then and the bank turned a blind to the financier's sex trafficking. It is a preliminary approval. It was issued by US District Judge Jed Rakoff during a hearing in Manhattan federal court.

"This is a really fine settlement," Rakoff said.

He said that the settlement and a similar USD 75 million agreement with Deutsche Bank he approved earlier this month were "very large settlements" that would compensate Epstein's victims though not make up for abuses they suffered.

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Epstein had been a client of JPMorgan client from 199 through 2013. In 2013, the bank terminated his accounts.

Victims of Epstein's sexual abuses, who are led by a former ballet dancer known as Jane Doe 1 said JPMorgan missed signs that Epstein was sexually abusing them. The bank, say the victims, stayed in touch with him even after his official departure.

Last week, victims' lawyers described the proposed all-cash settlement was "fair, adequate, reasonable" considering risks of further litigation and JPMorgan denying involvement in Epstein's sex trafficking.

This month, JPMorgan said in a statement that its association with Epstein "was a mistake and we regret it"

After he pleaded guilty in 2008 in Florida prostitution charge and registered as a sex offender, Epstein remained a JPMorgan client for five years.

The minimum guarantee issue

During the hearing on Monday, Judge Rakoff asked Jane Doe 1's lawyer David Boies why there was no minimum distribution for each victim. The judge asked the question noting that in the Deutsche Bank settlement, each victim was guaranteed at least USD 75,000.

Boies said that many victims in Deutsche Bank case were from Russia or Eastern Europe. It was difficult to call them. Boies said that minimum guaranteed amount was an incentive to come forward. He said that this was not the case in JPMorgan case.

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Rakoff appointed Simone Lelchuk, a lawyer who specializes in administering settlements, to consider individual claims and determine payouts in the JPMorgan and Deutsche Bank cases.

This is not the only lawsuit JPMorgan is facing. The bank also faces a lawsuit over Epstein by the US Virgin islands. Epstein owned two neighbouring islands. Reuters reported that the the case is scheduled to go on trial on Octiber 23.

Epstein died at age 66 in a Manhattan jail cell while awaiting trial on sex trafficking charges. New York City's medical examiner called the death a suicide.

(With inputs from agencies)

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