Deutsche Bank Wins Approval for $75 Million Settlement with Epstein Accusers
Deutsche Bank’s Settlement Approval
Deutsche Bank has received final approval from a U.S. judge for its $75 million settlement with victims of Jeffrey Epstein. The German company was accused of facilitating the late financier’s alleged sex trafficking. U.S. District Judge Jed Rakoff, who previously granted preliminary approval in June, signed off on the settlement during a Manhattan court hearing.
The Court’s View
Judge Rakoff expressed his satisfaction with the settlement, stating, “This is, in the court’s view, a terrific settlement.” Despite the approval, Deutsche Bank did not admit any wrongdoing as part of the agreement.
Covering Epstein’s Victims
The settlement covers women who have claimed they were sexually abused or trafficked by Epstein or his associates from August 19, 2013, until his death in 2019. Epstein was awaiting trial on criminal charges related to sex trafficking when he died in a Manhattan jail, with the medical examiner ruling it as suicide.
The Lawsuit and Deutsche Bank’s Error
The lawsuit was led by a woman known as Jane Doe 1, who alleged that Epstein sexually abused her from 2003 to 2018. She accused Deutsche Bank of overlooking red flags regarding his abuses. Epstein had been a client of the bank from 2013 to 2018 after being a JPMorgan Chase client for 15 years. Deutsche Bank acknowledged making an error in taking him on as a client.
Fees for the Lawyers and Lessons Learned
Judge Rakoff approved a fee of 30% of the settlement amount for the lawyers representing the women. One of the lawyers, David Boies, emphasized the significance of the case, stating that it served as “a wake-up call for banks” to be vigilant about their clients. In a similar case, JPMorgan received preliminary approval for its $290 million settlement, and a final approval hearing is scheduled for November 9.
JPMorgan’s Association with Epstein
JPMorgan, which had been associated with Epstein, was also sued by the U.S. Virgin Islands over claims that the bank aided Epstein. Last month, JPMorgan agreed to pay $75 million to settle those claims. The bank expressed regret for its association with Epstein.
Overall, Deutsche Bank’s approval of the $75 million settlement brings some closure to the victims of Jeffrey Epstein’s alleged sex trafficking. As these legal proceedings unfold, it is crucial for financial institutions to prioritize due diligence and ensure they are not complicit in illegal activities.
