NEW YORK (CNN) – Deutsche Bank has agreed to pay $75 million to settle a lawsuit alleging the bank facilitated the sex trade of the late financier Jeffrey Epstein as a customer.
The comparison to women who say they were abused by Epstein settles claims in a planned class action lawsuit in federal court in Manhattan. Epstein was a multimillionaire accused of child trafficking and was a customer of Deutsche Bank from 2013 to 2018.
Deutsche Bank spokesman Dylan Riddle declined to discuss the deal, but cited a 2020 statement in which the bank acknowledged an error in naming Epstein as a client. The settlement was confirmed by the women’s lawyers late Wednesday. Court approval is required.
“This landmark settlement is the culmination of a more than decade-long investigation by two law firms to blame one of Epstein’s financial banking partners for the role he played in furthering his human trafficking organization,” law firms Boies Schiller Flexner and Edwards Pottinger said in a joint statement .
The Wall Street Journal first reported on the settlement and, citing people familiar with the matter, said the bank had not admitted to wrongdoing.
The bank took Epstein on as a client despite various sex trafficking allegations. Epstein died in custody in August 2019 while awaiting trial on sex trafficking charges, in what the New York City coroner described as a suicide.
Before becoming a Deutsche Bank client, Epstein had already pleaded guilty to two state-level prostitution charges in Florida, including one involving a minor. He only served 13 months in prison and was released during the day to continue his business. In 2008, he also agreed with the federal prosecutor’s office to refrain from similar charges as shortly before his death.
JPMorgan case is still pending
A case is pending against another megabank, JPMorgan Chase, which also counted Epstein among its clients. Epstein’s accusers are suing that bank, as well as the US Virgin Islands, where the financier had a home.
Epstein was a client of JPMorgan from 1998 to 2013, a time when he reportedly traded far more women and girls. The court filings set out many details about the bank allegedly ignoring or turning a blind eye to Epstein’s activities. Tesla CEO Elon Musk is among those subpoenaed in the JPMorgan lawsuit.
JPMorgan did not immediately respond to requests for comment.
Deutsche Bank’s Riddle said the bank has invested more than €4 billion to improve its controls, processes and training, and hired more people to fight financial crime.
David Boies, one of the prosecutors’ attorneys, said in a statement that Epstein’s abuses “would not have been possible without the cooperation and support of many powerful individuals and institutions. We appreciate Deutsche Bank’s willingness to take responsibility for their role.”
Law firms Boies Schiller Flexner and Edwards Pottinger are representing Epstein’s accusers. A trial was scheduled for September 5th.
The Deutsche Bank case was led by an unidentified plaintiff named Jane Doe 1 who said Epstein sexually abused her from 2003 to 2018.
Another Jane Doe 1, a former ballet dancer who said Epstein smuggled her from 2006 to 2013, is leading the prosecutors’ case against JPMorgan.
Last September, Deutsche Bank agreed to pay $26.25 million to settle a lawsuit filed by US shareholders alleging the bank’s lax oversight of deals with risky, ultra-rich clients like Epstein.
– Portal contributed to this report