Deutsche Bank to pay $75 million to settle lawsuit by Jeffrey Epstein accusers

(Reuters) — Deutsche Bank AG has agreed to pay $75 million to settle a lawsuit by women who say they were abused by the late tycoon Jeffrey Epstein and accuse the German bank of facilitating his sex-trafficking ring.

The agreement resolves the claims in a class action lawsuit proposed in Manhattan federal court by Epstein’s accusers, and was confirmed by their lawyers Wednesday night. Court approval is required.

Epstein had been a Deutsche Bank client from 2013 to 2018. He died in August 2019 in jail while awaiting trial for sex trafficking, in what the New York City medical examiner ruled a suicide.

The Wall Street Journal reported about the deal earlier and said the bank had not admitted wrongdoing, citing people familiar with the matter.

Deutsche Bank spokesman Dylan Riddle declined to discuss the deal, but referred to a 2020 statement in which the bank acknowledged a mistake in making Epstein a customer.

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

David Boies, one of the lawyers for the accusers, said in a statement that Epstein’s abuse “could not have occurred without the collaboration and support of many powerful individuals and institutions. We appreciate Deutsche Bank’s willingness to take responsibility for their role.”

The law firms Boies Schiller Flexner and Edwards Pottinger are representing Epstein’s accusers. A trial had been scheduled for September 5.

The impact of JPMorgan

It was not immediately clear how the deal might affect JPMorgan Chase & Co, which is facing similar but bigger lawsuits from Epstein’s accusers and from the US Virgin Islands, where the financier had a home.

Epstein was a JPMorgan client from 1998 to 2013, a period in which he was allegedly trafficking many more women and girls. Court documents have outlined many details about the bank’s alleged ignorance or turning a blind eye to Epstein’s activities.

JPMorgan did not immediately respond to requests for comment outside of business hours.

He is separately suing Jes Staley, a former private banker who had been a friend of Epstein, to help cover his losses in the two lawsuits he faces.

Staley was also a CEO of Barclays Plc. Tesla Inc’s Elon Musk is among those who have been subpoenaed in the JPMorgan litigation.

The Deutsche Bank case was led by an unnamed plaintiff, known as Jane Doe 1, who said Epstein sexually abused her between 2003 and 2018.

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

Last September, Deutsche Bank agreed to pay $26.25 million to settle a lawsuit by a US shareholder who accused the bank of lax supervision while doing business with ultra-rich and risky 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.