US judge to weigh JPMorgan’s $290 million settlement with Epstein accusers

By Luc Cohen

NEW YORK (Reuters) – A U.S. judge on Thursday will weigh final approval of JPMorgan Chase (NYSE:)’s $290 million settlement with women who said Jeffrey Epstein abused them, and that the largest U.S. bank turned a blind eye to the late financier’s sex trafficking.

At Thursday’s hearing at 4 p.m. EST (2100 GMT) in Manhattan federal court, U.S. District Judge Jed Rakoff will consider an objection to the settlement by 16 U.S. states and Washington D.C., which said it could limit their ability to seek damages arising from sex trafficking by Epstein and his associates.

Rakoff had granted preliminary approval in June, calling it a “really fine settlement.”

The settlement covered more than 100 women, led by a former ballet dancer known as Jane Doe 1, who said Epstein abused them.

It followed embarrassing disclosures that JPMorgan ignored internal warnings and overlooked red flags about Epstein because he had been a valuable client.

Epstein was a JPMorgan client from 1998 to 2013. The bank kept him on even after he was arrested in 2006 on prostitution charges and pleaded guilty two years later.

JPMorgan did not admit wrongdoing in agreeing to settle.

At the hearing, Rakoff will also hear from one of Epstein’s accusers, Sarah Ransome, who has argued that the settlement is too small and does not explain how funds will be distributed.

JPMorgan in September agreed to pay $75 million to settle related claims by the U.S. Virgin Islands, where Epstein owned two islands, pending Rakoff’s approval.

Rakoff on Oct. 20 gave final approval to a similar $75 million settlement between Epstein’s accusers and Deutsche Bank, where Epstein banked after JPMorgan fired him.

Epstein died in a Manhattan jail cell in 2019 at age 66 while awaiting trial on sex trafficking charges. New York City’s medical examiner ruled the death a suicide.

Ghislaine Maxwell, Epstein’s former girlfriend and longtime associate, is serving a 20-year prison sentence after being convicted in December 2021 of recruiting and grooming teenage girls for him to abuse. She is appealing her conviction.