JPMorgan Chase says it attempted to resolve allegations from a former investment banker before the individual filed a civil suit that alleges sexual assault and racial harassment at the firm.
According to published reporting, the bank proposed a $1 million settlement, which the former banker declined while seeking a larger sum. In the lawsuit the plaintiff uses the placeholder name John Doe. The complaint was refiled on Monday in New York state court after being taken down previously, and names both JPMorgan and leveraged finance executive Lorna Hajdini.
A JPMorgan spokesperson declined to discuss confidential negotiations in detail but said the bank did seek 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." The spokesperson added: "We continue to believe these allegations have no merit and new information raised as a result of the public filing only reinforces that conclusion."
The complaint alleges that Hajdini used her seniority to coerce the plaintiff into non-consensual sex acts and that members of the leveraged finance team directed racial slurs at him. The suit states the complainant is a man of Asian descent who lives in New York and who joined JPMorgan's leveraged finance group in March 2024 as a senior vice president.
Per the court filing, the plaintiff lodged an internal complaint with JPMorgan in May 2025, alleging race- and gender-based discrimination as well as sexual abuse. The suit says the bank placed John Doe on administrative leave after the internal complaint was filed.
JPMorgan has said an internal investigation involving numerous employees found no merit to the claims. The bank also reported that the complainant refused to participate in its investigation.
Lawyers for Lorna Hajdini have denied the allegations and maintained that the two never had any sexual or romantic relations. In a statement included in court filings, Hajdini's attorneys said: "She maintains that his false claims are entirely fabricated and tarnishing her reputation."
The suit and the bank's statements have generated attention both for the serious nature of the allegations and because the institution in question is the largest U.S. bank, which could raise reputational and legal stakes for the firm. Market references to the company's stock were also disseminated alongside reporting on the case. At the time of the reporting, a snapshot of the stock showed a closing price listed as 314.90, up 5.50 points or 1.78 percent, with an after-hours quote of 314.60, down 0.30 points or 0.10 percent. Time stamps associated with these market data points were 15:59:59 for the close and 16:22:14 for the after-hours quote.
The plaintiff's lawyer did not immediately respond to a request for comment. The case remains active following the refiling in New York state court, and the parties' competing accounts - the plaintiff's allegations, the defendant's denial, the bank's internal inquiry and the bank's account of settlement discussions - form the current record publicly available.
Context and next steps
The matter now proceeds in state court after the recent refiling. Court schedules, any further filings, and responses from the involved parties will determine how the factual record is developed going forward. For now, public statements from the bank and from Hajdini's legal representatives reject the core allegations; the plaintiff's refusal to participate in the internal investigation is also part of the factual record cited by JPMorgan.