On Friday, Deutsche Bank received final approval from a US judge for a $75 million settlement it had reached with victims of Jeffrey Epstein, who had accused the German company of facilitating the late financier’s alleged involvement in sex trafficking.
US District Judge Jed Rakoff, who had previously granted preliminary approval for the deal in June, officially approved the settlement during a court hearing in Manhattan. In court, Judge Rakoff remarked, “This is, in the court’s view, a terrific settlement.”
It’s important to note that Deutsche Bank did not admit any wrongdoing as part of this settlement.
The settlement encompasses women who have claimed they were sexually abused or trafficked by Epstein or his associates between August 19, 2013, and his death in a Manhattan jail six years later while awaiting trial on charges related to the trafficking of young women and teenage girls for sex. The New York City medical examiner ruled Epstein’s death as a suicide.
The lawsuit was led by an individual referred to as Jane Doe 1, who alleged that Epstein sexually abused her from 2003 to 2018 and accused Deutsche Bank of failing to notice warning signs of his misconduct. Epstein had been a Deutsche Bank client from 2013 to 2018, following a 15-year association with JPMorgan Chase.
Deutsche Bank has publicly acknowledged making an error in taking on Epstein as a client.
Judge Rakoff also approved attorney fees equivalent to 30% of the settlement amount for the legal representation of the women. David Boies, one of the lawyers involved in the case, stated after the hearing that this case served as a “wake-up call for banks” regarding the importance of knowing their clients and monitoring their activities.
In June, Judge Rakoff granted preliminary approval for a $290 million settlement involving JPMorgan, a New York-based financial services company, over similar claims related to Jeffrey Epstein. A hearing for the final approval of that settlement is scheduled for November 9. Deutsche Bank received
JPMorgan was also facing a lawsuit by the US Virgin Islands, where Epstein owned two private islands, over allegations that the bank assisted Epstein. Last month, JPMorgan agreed to a $75 million settlement to resolve those claims.
JPMorgan has expressed regret for its association with Jeffrey Epstein.