Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

JPMorgan settlement with Epstein accusers draws objection from US states

Published 10/23/2023, 06:24 PM
Updated 10/23/2023, 06:45 PM
© Reuters. FILE PHOTO: A sign outside the headquarters of JPMorgan Chase & Co in New York, September 19, 2013. REUTERS/Mike Segar/File Photo

By Jonathan Stempel

NEW YORK (Reuters) - JPMorgan Chase's $290 million class-action settlement with Jeffrey Epstein's accusers has drawn an objection from many U.S. states, which say the accord could limit their ability to seek compensation for sexual abuse victims.

In a letter made public on Monday in Manhattan federal court, the attorneys general of 16 states and Washington, D.C., complained about settlement language that prevents "any sovereign or government" from seeking damages arising from sex trafficking by Epstein and the late financier's associates.

The attorneys general said including such language without their consent would deter them from seeking damages for sex trafficking victims, not just Epstein's, under the federal Trafficking Victims Protection Act.

They also said Deutsche Bank's similar $75 million agreement with Epstein's accusers did not contain the offending language.

"Jeffrey Epstein's surviving victims should be fully compensated for the profound harm they have suffered," New Mexico Attorney General Raul Torrez wrote. "However, as it now stands, the settlement agreement improperly seeks to release (the states') claims for victim-specific relief."

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. Lawyers for Epstein's accusers did not immediately respond to similar requests.

The settlement requires approval by U.S. District Judge Jed Rakoff.

He ordered JPMorgan and Epstein's accusers to address the states' objection by Nov. 6. A hearing to consider 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 because he had been a lucrative client between 1998 to 2013, when it terminated his accounts.

Last month, JPMorgan agreed separately to pay $75 million to settle related claims by the U.S. Virgin Islands, where Epstein had a home.

© Reuters. FILE PHOTO: A sign outside the headquarters of JPMorgan Chase & Co in New York, September 19, 2013. REUTERS/Mike Segar/File Photo

Epstein died in August 2019 in a Manhattan jail cell while awaiting trial for sex trafficking. New York City's medical examiner called his death a suicide.

The case is Doe 1 v JPMorgan Chase & Co (NYSE:JPM), U.S. District Court, Southern District of New York, No. 22-10019.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.