Deutsche Bank pays $75 million to settle lawsuit filed by Epstein’s accusers

May 17 (Reuters) – Deutsche Bank AG (DBKGn.DE) has agreed to pay $75 million to settle a lawsuit by women who said they were abused by the late financier Jeffrey Epstein and accused the German bank of facilitating sex trafficking.

The agreement resolves a proposed class-action lawsuit in Manhattan federal court, which attorneys for the defendants confirmed late Wednesday.

Deutsche Bank has been accused of missing red flags in Epstein’s accounts that he was involved in wrongdoing.

Epstein, who pleaded guilty in 2008 to a Florida prostitution charge and registered as a sex offender, was a Deutsche Bank customer from 2013 to 2018.

He died in August 2019 in prison while awaiting trial for sex trafficking, in what the New York City medical examiner called a suicide.

Deutsche Bank’s settlement requires approval by US District Judge Jed Rakoff, who on Thursday set a preliminary hearing for June 1 to consider its fairness.

Two similar court cases against JPMorgan Chase & Co (JPM.N), where Epstein was a client from 1998 to 2013, remain unresolved.

Deutsche Bank spokesman Dylan Riedel declined to discuss the agreement, but the bank acknowledged a mistake in making Epstein a client.

Riedel also said that Deutsche Bank has invested more than 4 billion euros to strengthen its controls, operations and training, and to hire more people to fight financial crime.

David Boyes, one of the defendants’ attorneys, said in a statement that Epstein’s abuses required “the cooperation and support of many powerful individuals and institutions. We appreciate Deutsche Bank’s willingness to take responsibility for its role.”

Boies Schiller Flexner and Edwards Pottinger represent Epstein’s accusers.

A trial was scheduled for September 5.

The Wall Street Journal reported the settlement earlier and said Deutsche Bank had not admitted wrongdoing, citing people familiar with the matter.

JPMORGAN effect

It was not clear how the settlement would affect two similar and major cases against JPMorgan by Epstein’s accusers and from the US Virgin Islands, where the financier had a home.

Court papers have detailed many allegations that this bank turned a blind eye to its activities.

JPMorgan spokeswoman Patricia Wexler on Thursday declined to discuss those lawsuits.

She noted that JPMorgan regretted its association with Epstein and said it did not believe it violated any laws.

The bank is separately suing Jess Staley, a former head of private banking who was friendly with Epstein, to help cover his losses in the two lawsuits. Staley is also the former CEO of Barclays plc (BARC.L).

JPMorgan trials are scheduled for October 23. Tesla Inc (TSLA.O) CEO Elon Musk is among those called.

The Deutsche Bank case was led by a woman identified as Jane Do 1, who said Epstein sexually assaulted her from 2003 to 2018.

Jane Doe 1, a former ballet dancer who said Epstein trafficked her from 2006 to 2013, is leading the defendants’ case against JPMorgan.

In 2020, the New York State Financial Watchdog fined Deutsche Bank $150 million for its work with Epstein.

Last September, Deutsche Bank agreed to pay $26.25 million to settle a lawsuit against US shareholders over its relationships with risky, wealthy clients like Epstein.

The case is Jane Doe 1 v Deutsche Bank AG et al, US District Court, Southern District of New York, No. 22-10018.

Additional reporting by Rahat Sandhu in Bengaluru; Editing by Jacqueline Wong

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