Stock Markets April 2, 2026

Judge Gives Preliminary OK to Bank of America’s $72.5 Million Settlement with Epstein Accusers

Manhattan federal court schedules August hearing as plaintiffs weigh legal fees and prior settlements with other banks

By Hana Yamamoto BAC
Judge Gives Preliminary OK to Bank of America’s $72.5 Million Settlement with Epstein Accusers
BAC

A U.S. district judge in Manhattan has given preliminary approval to Bank of America's $72.5 million settlement with women who allege the bank enabled Jeffrey Epstein's sexual abuse. The court set an August 27 hearing for final approval. The class action, brought by a plaintiff using the pseudonym Jane Doe, accused the bank of prioritizing profit over identifying suspicious transactions tied to Epstein. Bank of America disputes that it facilitated sex trafficking but agreed to the settlement in March to provide closure for accusers.

Key Points

  • U.S. District Judge Jed Rakoff gave preliminary approval to Bank of America’s $72.5 million settlement with women who accused the bank of facilitating Jeffrey Epstein’s abuse; a final approval hearing is set for August 27.
  • The class action, filed in October by a plaintiff using the pseudonym Jane Doe, accuses the bank of ignoring suspicious financial transactions tied to Epstein despite alleged evidence of his crimes.
  • Plaintiffs’ lawyers may seek up to 30% of the settlement for legal fees (about $21.8 million); related litigation has produced 2023 settlements of $290 million with JPMorgan Chase and $75 million with Deutsche Bank.

A federal judge in Manhattan on Thursday granted preliminary approval to a $72.5 million settlement between Bank of America and women who say the bank facilitated sexual abuse by Jeffrey Epstein. U.S. District Judge Jed Rakoff set a hearing for August 27 to decide whether the settlement will receive final court approval.

The suit originated in October with a woman filing under the pseudonym Jane Doe. Her complaint accused the second-largest U.S. bank of overlooking suspicious financial activity tied to Epstein, alleging the bank had a "plethora" of information about his crimes but put profit ahead of protecting victims.

In a January ruling, Judge Rakoff concluded that Bank of America must face Doe’s claims that the bank knowingly benefited from Epstein’s sex trafficking and interfered with enforcement of the federal Trafficking Victims Protection Act. Epstein died in a Manhattan jail cell in August 2019 while awaiting trial; New York City’s medical examiner ruled the death a suicide.

Bank of America agreed in March to resolve the civil lawsuit but maintained it did not facilitate sex trafficking. The bank said the settlement would allow it to move on and provide closure for the accusers.

Attorneys representing the plaintiffs, David Boies and Bradley Edwards, said the settlement represented the best available option for their clients, noting the harm the women suffered occurred many years ago and that immediate financial relief was needed. The plaintiffs’ legal team may seek up to 30% of the settlement, which would amount to about $21.8 million, as attorneys’ fees.

The complaint referenced specific transactions, including payments to Epstein by Leon Black, the billionaire co-founder of Apollo Global Management. Black stepped down as Apollo’s chief executive in 2021 after an outside law firm’s review found he had paid Epstein $158 million for tax and estate planning. Black has denied any wrongdoing and said he was not aware of Epstein’s criminal conduct.

Doe’s lawyers have pursued litigation against other individuals and institutions they describe as enablers of Epstein’s trafficking. In 2023 those lawyers reached settlements totaling $290 million with JPMorgan Chase and $75 million with Deutsche Bank on behalf of Epstein’s accusers. They are also appealing Judge Rakoff’s January dismissal of a similar suit they brought against Bank of New York Mellon.


Context on investor questions and tools referenced in the original filing

The filing included a question directed at Bank of America investors about whether to buy shares of BAC at present. The source referenced an AI-driven stock selection tool called ProPicks AI that evaluates BAC along with many other companies using more than 100 financial metrics, and said the tool generates stock ideas by assessing fundamentals, momentum, and valuation. The material noted the tool is data-driven and cited prior notable winners it identified, and invited readers to check whether BAC appears in any current strategies or whether there are alternative opportunities in the same sector.

Risks

  • Final court approval is not guaranteed - the settlement remains subject to the August 27 hearing, creating uncertainty for the parties and potential investors in the banking sector.
  • Legal costs and fee requests could reduce the funds available to accusers - plaintiffs’ lawyers may seek up to 30% of the settlement, affecting net payouts and compensation timing.
  • Ongoing litigation and appeals persist - the plaintiffs’ legal team is pursuing other defendants and appealing dismissals, keeping legal exposure and reputational risk active for institutions named in related suits.

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