JPMorgan’s $290M for Epstein victims sends a signal to the industry
investmentnews.comA $290 million settlement between JPMorgan Chase & Co. and victims of Jeffrey Epstein was approved by a federal judge, who rejected a last-minute challenge from a group of state attorneys general that could have delayed the payout to almost 200 victims.
US District Judge Jed Rakoff said the pact, which resolved claims that the bank ignored red flags to keep Epstein as a client, would send a signal to the financial industry and beyond.
“It should not be lost that this case sent a message, through this very substantial settlement, that banking institutions and others as such have a responsibility that perhaps was not fully recognized in the past,” Rakoff said at a hearing Thursday afternoon in Manhattan on the fairness of the accord.
His approval marks the end of a long court battle over JPMorgan’s treatment of Epstein when he was a prized client between 1998 and 2013. A Jane Doe victim sued the bank late last year, claiming it knowingly benefited from Epstein’s sex trafficking. The litigation unearthed details of Epstein’s associations with senior bankers, including Jes Staley, who stepped down as Barclays Plc chief executive officer over his ties to the late sex offender.
The preliminary settlement, in which JPMorgan didn’t admit liability, was reached in June. But top law enforcement officials from 16 states and the District of Columbia last month objected to some of its terms.
In particular, the attorneys general pointed to a clause that released JPMorgan from future claims by any “sovereign or government” on behalf of victims already in line for damages as part of the class action.
“Allowing such a broad release of claims may have serious implications for future cases brought by state law enforcement against
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