JPMorgan Chase Sought Settlement Before Banker Filed Sexual Assault Lawsuit

JPMorgan Chase attempted to settle sexual assault and harassment allegations made by a former investment banker before he filed a lawsuit, a bank spokesperson said.

 

The largest US bank offered $1 million to settle the claims, according to a report by The Wall Street Journal, which cited people familiar with the matter. The report added that the former banker rejected the offer and sought a higher amount.

 

The plaintiff, identified in the lawsuit under the pseudonym John Doe, last week sued JPMorgan and leveraged finance executive Lorna Hajdini, alleging he was subjected to sexual assault and racial harassment at the bank.

The lawsuit was refiled on Monday in a New York state court after it had previously been withdrawn.

 

“While we cannot comment on confidential discussions, we did try to reach an agreement to avoid the time and expense of litigation and to support an employee who was being threatened with the very reputational harm now unfolding,” a JPMorgan spokesperson said.

 

“We continue to believe these allegations have no merit, and new information raised as a result of the public filing only reinforces that conclusion.”

 

Doe’s lawyer, Daniel Kaiser, told Reuters in an email that he was not involved in the settlement discussions, which took place before he began representing the plaintiff.

 

“However, I will note that in my 30-plus years as an employment litigator, I have never had an employer defendant make such a substantial offer if they truly believed the allegations to be a ‘complete fabrication’.”

 

In the lawsuit, Doe alleged that Hajdini used her seniority to coerce him into non-consensual sexual acts. He also claimed that members of the leveraged finance team directed racial slurs at him.

 

The complainant, a man of Asian descent living in New York, joined JPMorgan’s leveraged finance group in March 2024 as a senior vice-president, according to the suit.

 

In May 2025, the plaintiff filed an internal complaint with JPMorgan, alleging race- and gender-based discrimination and sexual abuse. According to the lawsuit, he was placed on administrative leave after lodging the complaint.

 

JPMorgan said an internal investigation involving numerous employees found no merit in the allegations. The bank also said the complainant refused to participate in the investigation.

 

Lawyers for Hajdini denied the allegations and said the two never had a sexual or romantic relationship.

 

“She maintains that his false claims are entirely fabricated and are tarnishing her reputation,” Hajdini’s lawyers said.

 

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