JPMorgan Chase & Co (NYSE:JPM) and Deutsche Bank AG (NYSE:DB) must face lawsuits alleging that they knowingly enabled Jeffrey Epstein’s sex trafficking, a US judge has ruled.
The decision handed down by US District Judge Jed Rakoff in New York on Monday could expose the two banks to further financial and reputational damage for their relationships with client Epstein.
Both banks must face proposed class actions by women who allege Epstein sexually abused them, Rakoff said. He noted that he would explain his reasoning in due course.
JP Morgan must also face a lawsuit by the US Virgin Islands alleging the bank missed red flags about Epstein’s alleged abuse of women at his private island estate.
Rakoff’s decision will allow the plaintiffs to argue that the banks had “knowingly benefited from participating in a sex trafficking venture.”
They can also argue the banks were negligent and obstructed the enforcement of federal anti-trafficking law.
Six claims by an Epstein abuser known as Jane Doe against JP Morgan and eight other claims against Deutsche Bank were dismissed by Rakoff. A trial date has been set for October.
Lawyer for the anonymous Epstein survivors Brad Edwards said the decision was “a monumental victory for the hundreds of survivors of Jeffrey Epstein’s sex trafficking scheme and survivors of sexual abuse in general, all of whom can rest easier knowing no individual or institution is above accountability.”
Acting Attorney-General for the US Virgin Islands Carol Thomas-Jacob said: “We look forward to uncovering additional facts regarding the depth and reach of JPMorgan’s conduct in the discovery process and ultimately proving our case in court.”
JP Morgan and Deutsche Bank declined to comment on the decision.
Both banks have previously said they had no legal duty to protect women from Epstein and denied accusations they knew about his alleged abuses.
Epstein was a client of JP Morgan from 2000 to 2013, and Deutsche Bank from 2013 to 2018.
Contact the author at emily.jarvie@proactiveinvestors.com
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