A Manhattan federal judge ruled that Bank of America must face two claims in a proposed class-action alleging the bank knowingly benefited from Jeffrey Epstein's sex trafficking and obstructed enforcement of the Trafficking Victims Protection Act. The court dismissed four other claims against Bank of America and tossed all claims against Bank of New York Mellon. Judge Jed Rakoff will issue a written opinion by Feb. 13, and a trial for Bank of America is set for May 11. Plaintiffs say the banks continued serving Epstein until his July 2019 arrest and failed to file timely suspicious activity reports.
Judge Rules Bank Of America Must Face Part Of Epstein Class Action; BNY Mellon Cleared
A Bank of America logo is seen on the entrance to a Bank of America financial center in New York City, U.S., July 11, 2023. REUTERS/Brendan McDermid
A U.S. federal judge in Manhattan has ruled that Bank of America must face two claims in a proposed class-action lawsuit alleging the bank knowingly benefited from Jeffrey Epstein's sex trafficking by providing him with banking services. At the same time, the judge dismissed a similar suit against Bank of New York Mellon.
What The Court Decided
U.S. District Judge Jed Rakoff allowed two counts against Bank of America to proceed: that the bank knowingly benefited from Epstein's sex trafficking and that it obstructed enforcement of the federal Trafficking Victims Protection Act. Rakoff rejected four additional claims against Bank of America, including allegations that the bank directly participated in or aided Epstein's trafficking and that it negligently failed to protect victims or improperly provided certain non-routine banking services.
Bank of New York Mellon, the world's largest custodial bank, prevailed on all six claims brought against it. Rakoff said he will issue a written opinion explaining his reasoning by Feb. 13. A trial involving Bank of America is scheduled to begin on May 11.
Statements From The Parties
Bank of America said it was "pleased that its case was narrowed" and added, "We look forward to a full review of the facts." BNY Mellon said the dismissal "reinforces that BNY had no involvement in Epstein's crimes."
David Boies, an attorney for the plaintiff, said he looks forward to the Bank of America trial and plans to appeal the BNY Mellon dismissal.
Case Background
The lawsuits were filed in October by a Florida woman identified in filings as Jane Doe, on behalf of herself and other alleged victims. Plaintiffs contend that despite widespread knowledge of Epstein's misconduct, the banks continued to do business with him until his arrest in July 2019 and failed to file timely suspicious activity reports with the U.S. Treasury Department.
Bank of America’s complaint referenced previously publicized allegations about Epstein’s business connections with prominent figures. The BNY Mellon complaint included an allegation that the bank processed hundreds of millions of dollars in wire transfers on Epstein's behalf.
Doe's attorneys have pursued other claims on behalf of Epstein accusers. In 2023 they reached settlements of $290 million with JPMorgan Chase and $75 million with Deutsche Bank; neither bank admitted wrongdoing, and Judge Rakoff approved both settlements.
Context
Jeffrey Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on sex-trafficking charges; New York City's medical examiner ruled the death a suicide.
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