A sign outside the headquarters of JPMorgan Chase & Co in New York, September 19, 2013. Portal/Mike Segar/File Photo ACKNOWLEDGE RIGHTS
NEW YORK, Oct 23 (Portal) – JPMorgan Chase’s (JPM.N) $290 million class action lawsuit with Jeffrey Epstein’s accusers has drawn objections from many U.S. states who say the settlement could limit their ability to seek compensation for victims of sexual abuse.
In a letter released Monday in federal court in Manhattan, the attorneys general of 16 states and Washington, D.C., complained about settlement language that bars “any sovereign or government” from seeking damages for sex trafficking by Epstein and the associates of the deceased financier.
The attorneys general said including such language without their consent would bar them from seeking damages for sex trafficking victims, not just Epstein, under the federal Trafficking Victims Protection Act.
They also said Deutsche Bank’s (DBKGn.DE) similar $75 million settlement with Epstein’s accusers did not contain the offensive language.
“Jeffrey Epstein’s surviving victims should be fully compensated for the serious harm they suffered,” New Mexico Attorney General Raul Torrez wrote. “However, in its current form, the settlement agreement incorrectly seeks to release (the states’) claims for victim-specific compensation.”
The attorneys general of Arizona, California, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maryland, Minnesota, Mississippi, New York, Oregon, Pennsylvania, Tennessee, Utah and Vermont also signed the letter.
JPMorgan did not immediately respond to requests for comment. Attorneys for Epstein accusers did not immediately respond to similar requests.
The settlement requires approval from U.S. District Judge Jed Rakoff.
He ordered JPMorgan and Epstein prosecutors to address the states’ objection by November 6. A hearing to consider the final approval is scheduled for Nov. 9, court records show.
The settlement resolved claims that the largest U.S. bank turned a blind eye to Epstein’s sex trafficking operation because he was a lucrative customer between 1998 and 2013, when it terminated his accounts.
Last month, JPMorgan separately agreed to pay $75 million to settle related claims from the U.S. Virgin Islands, where Epstein had a home.
Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges. The New York City coroner ruled his death a suicide.
The case is Doe 1 v. JPMorgan Chase & Co, U.S. District Court, Southern District of New York, No. 22-10019.
Reporting by Jonathan Stempel in New York; Editing by Lisa Shumaker
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