Stock Markets March 27, 2026

Bank of America to pay $72.5 million to resolve Epstein-related lawsuit

Settlement awaits federal judge's approval in class action alleging the bank enabled Jeffrey Epstein through ignored transactions

By Nina Shah
Bank of America to pay $72.5 million to resolve Epstein-related lawsuit

Bank of America has agreed to a $72.5 million settlement to resolve a civil suit brought by women who say the bank facilitated their sexual abuse by Jeffrey Epstein, according to court records. The agreement, which requires approval from U.S. District Judge Jed Rakoff, settles claims that the bank ignored suspicious financial activity tied to Epstein.

Key Points

  • Bank of America has agreed to a $72.5 million settlement in a civil case brought by women who allege the bank facilitated sexual abuse by Jeffrey Epstein; the deal is subject to U.S. District Judge Jed Rakoff's approval.
  • The proposed class action, filed in October by a plaintiff identified as Jane Doe, accused the bank of ignoring suspicious transactions tied to Epstein amid claims the bank prioritized profit over victim protection.
  • Judge Rakoff previously ruled in January that Bank of America must face claims it knowingly benefited from Epstein's sex trafficking and obstructed enforcement of the Trafficking Victims Protection Act; transactions flagged in the suit include payments from Leon Black.

Bank of America has reached an agreement to pay $72.5 million to settle a civil lawsuit brought by women who allege the bank facilitated their sexual abuse at the hands of Jeffrey Epstein, court records showed on Friday. The settlement was described to Manhattan-based U.S. District Judge Jed Rakoff earlier this month as a "settlement in principle," though its terms were not publicly disclosed at that time.

The proposed resolution remains subject to Judge Rakoff's approval. The judge set a hearing for Thursday to consider whether to grant that approval.

The suit, originally filed in October by a plaintiff using the pseudonym Jane Doe, accused the second-largest U.S. bank of disregarding a set of suspicious financial transactions connected to Epstein despite what the filing described as a "plethora" of information about his criminal conduct. The complaint contended that the bank prioritized profit over the safety of victims.

Bank of America has pushed back on those allegations, saying that Doe's claims were limited to the bank having provided routine services to individuals who at the time had no known connections to Epstein. The bank characterized any implication of deeper involvement as "threadbare and meritless."

Earlier this year, in January, Judge Rakoff ruled that Bank of America must face Doe's assertions that the institution knowingly benefited from Epstein's sex trafficking and impeded enforcement of the federal Trafficking Victims Protection Act. The complaint highlighted a number of transactions, including payments to Epstein from Leon Black, the billionaire co-founder of Apollo Global Management.

Leon Black stepped down as Apollo's chief executive in 2021 after an outside law firm review found he had paid Epstein $158 million for tax and estate planning services. Black has denied any wrongdoing and has said he was unaware of Epstein's criminal behavior.

Doe's legal team has pursued suits against other alleged facilitators of Epstein's trafficking. In 2023, those lawyers secured settlements totaling $290 million with JPMorgan Chase and $75 million with Deutsche Bank on behalf of Epstein's accusers.

Separately, the lawyers are appealing Judge Rakoff's January dismissal of a related lawsuit they filed against Bank of New York Mellon.

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 his death a suicide.


Note on related tools: For readers evaluating Bank of America's stock, a Fair Value calculator is available that uses a mix of 17 industry valuation models to produce a composite estimate. The tool is presented as a way to assess BAC and other stocks.

Risks

  • Judicial approval is required for the settlement to take effect - the judge's decision at the scheduled hearing could alter or halt the agreement; this uncertainty affects legal and reputational exposure for the bank and the financial sector.
  • Ongoing litigation and appeals related to Epstein cases persist, including an appeal of Rakoff's dismissal of a similar suit against Bank of New York Mellon - continued legal activity may generate additional costs or reputational damage for institutions involved.
  • Settlements with other banks in related cases, such as the 2023 agreements with JPMorgan Chase and Deutsche Bank, highlight persistent legal and compliance risks for the banking sector when accused of inadequate controls around high-profile clients.

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