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

By Chris Isidore, CNN

New York (CNN) — Deutsche Bank has agreed to pay $75 million to settle a lawsuit accusing the bank of enabling sex trafficking by deceased financier Jeffrey Epstein when he was a client.

The settlement with women who say they were abused by Epstein, resolves claims in a proposed class action in Manhattan federal court. Epstein was a multi-millonaire accused of child sex trafficking and was a Deutsche Bank client from 2013 to 2018.

Deutsche Bank spokesman Dylan Riddle declined to discuss the accord, but referred to a 2020 statement in which the bank acknowledged error in making Epstein a client. The setttlement was confirmed by the women’s lawyers late on Wednesday. Court approval is required.

“This groundbreaking settlement is the culmination of two law firms conducting more than a decade-long investigation to hold one of Epstein’s financial banking partners responsible for the role it played in facilitating his trafficking organization,” law firms Boies Schiller Flexner and Edwards Pottinger said in a joint statement.

The Wall Street Journal first reported the settlement and said the bank did not admit wrongdoing, citing people familiar with the matter.

The bank took Epstein as a client even after various charges of sex trafficking had already surfaced. Epstein died in August 2019 in detention while awaiting trial for sex trafficking, in what New York City’s medical examiner called a suicide.

Before he became a Deutsche Bank client, Epstein had already pleaded guilty to two state-level prostitution charges in Florida, including one involving a minor. He served only 13 months in prison and was released during the day to run his business. He also reached a plea deal with federal prosecutors in 2008 to dispense with charges similar to the ones he faced shortly before his death.

JPMorgan case still pending

There is still a case pending involving another mega-bank, JPMorgan Chase, which also counted Epstein as a client. Epstein’s accusers as suing that bank so is the US Virgin Islands, where the financier had a home.

Epstein was a JPMorgan client from 1998 to 2013, a period when he allegedly trafficked many more women and girls. Court papers have outlined many details about the bank’s alleged ignoring or turning a blind eye to Epstein’s activities. Tesla CEO Elon Musk is among those who have been subpoenaed in the JPMorgan litigation.

JPMorgan did not immediately respond to requests for comment.

Deutsche Bank’s Riddle said the bank has invested more than €4 billion to bolster its controls, processes and training, and hired more people to fight financial crime.

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

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

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

A different 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 US shareholder lawsuit accusing the bank of lax oversight while doing business with risky, ultra-rich clients like Epstein.

– Reuters contributed to this report

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