US Judge Allows Epstein Victims’ Case Against Bank of America to Proceed

A US judge ruled that accusations Bank of America recklessly ignored evidence that the late financier Jeffrey Epstein was engaged in sex trafficking were enough to allow a proposed class action lawsuit to move forward.

US District Judge Jed Rakoff made the assessment in an opinion explaining his January 29 decision to let Epstein victims pursue two claims alleging that the country’s second-largest bank knowingly benefited from Epstein’s sex trafficking and obstructed enforcement of the federal Trafficking Victims Protection Act.

The judge dismissed four other claims against Bank of America, as well as all claims in a similar lawsuit against Bank of New York Mellon. He did not rule on the merits of the remaining Bank of America claims.

Bank of America said it looked forward to a full review of the facts. Lawyers for the Epstein victims did not immediately respond to requests for comment after market hours. A trial is scheduled for May 11.

Bank of America, based in Charlotte, North Carolina, had argued that the Jane Doe plaintiff had "at best" alleged that it provided banking services to high net-worth clients linked to Epstein and had not shown it intentionally obstructed law enforcement.

In a 42-page opinion, however, Rakoff said Doe "plainly alleges" that Bank of America provided non-routine banking services to assist Epstein. These included designating Doe as a "premier" customer and allowing large money transfers, despite having "every reason to know" Epstein was involved in the transactions and in sex crimes.

The judge also noted that Doe plausibly alleged the bank "turned a blind eye" to media reports about Epstein and failed to investigate "the way large transfers passed in and out of an account allegedly owned by an impecunious young woman," referring to Doe.

Rakoff further said Doe plausibly alleged that one bank employee, a former banker for Epstein at JPMorgan Chase and Deutsche Bank, had "direct personal knowledge" of Epstein’s sex trafficking, for which Bank of America could be held civilly liable.

Doe, who lives in Florida, claimed Bank of America and BNY continued to do business with Epstein until his arrest in July 2019, prioritising profit over protecting victims. Epstein died in a Manhattan jail cell the following month while awaiting trial on sex trafficking charges; New York City’s medical examiner ruled his death a suicide.

In 2023, Doe’s lawyers reached settlements on behalf of other accusers: $290 million with JPMorgan Chase and $75 million with Deutsche Bank. Neither bank admitted wrongdoing.

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