Judge Approves Bank of America's $72.5M Epstein Victims Settlement

A federal judge in Manhattan has signed off on Bank of America's $72.5 million settlement with victims of Jeffrey Epstein, making BAC the third major financial institution to publicly resolve claims tied to the late financier.

What the judge ruled

At a hearing Thursday, US District Judge Jed Rakoff called the agreement “fair, reasonable and adequate,” clearing the way for lawyers to begin distributing money to about 90 women who were sexually abused or trafficked by Epstein and the people around him.

The judge gave his oral approval to the settlement at the hearing on Thursday, and promised a written order formalizing the final approval by the end of the week. Rakoff also consented to plaintiffs' attorneys from Boies Schiller Flexner receiving 30% of the $72.5 million settlement.

The allegations against BAC

Bank of America was accused in the class action of “purposely and deliberately” failing to timely file required Suspicious Activity Reports detailing Epstein's suspicious banking activities until after his jailhouse death in 2019.

Bank of America agreed to settle the lawsuit in March while still insisting it did not facilitate Epstein's sex trafficking crimes. The bank previously attempted to dismiss the case, claiming there was no reason to believe the transactions were suspicious because the actions were routine and the recipients had no known connection to Epstein's sex-trafficking operations.

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Third bank to settle

BofA now joins two Wall Street peers that have already paid out. The settlement follows JPMorgan Chase's $290 million payout and Deutsche Bank's $75 million deal with Epstein victims years prior.

The case included scrutiny of payments made to Epstein by individuals such as Apollo Global Management co-founder Leon Black. Black previously paid Epstein $158 million for financial services and has denied wrongdoing.

Options market and stocks to watch

Traders eyeing the legal and reputational overhang across large financials may want to watch:

• BAC — watch for flow reaction now that the settlement is finalized and the headline risk is largely priced in.
• JPM — already settled for $290 million, but remains a reference point for any future Epstein-adjacent litigation.
• DB — the first of the three to settle at $75 million; watch for any read-across on European bank compliance headlines.
• APO — Apollo Global Management, given the ongoing references to co-founder Leon Black's past payments to Epstein.

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