JPMorgan to Pay $75M to Settle Epstein-Related Claims

JPMorgan sign in New York

What You Need to Know

The bank tentatively agreed to a deal with the U.S. Virgin Islands, which had originally sought $190 million.
It also reached a confidential agreement with former executive Jes Staley to resolve the firm’s claims against him.
A Jane Doe victim filed a proposed class action against JPMorgan in November, which it settled for $290 million in June.

JPMorgan Chase & Co. reached settlements with former executive Jes Staley and the U.S. Virgin Islands over ties to Jeffrey Epstein, as it seeks to end its legal woes over its banking relationship to the deceased pedophile.

The biggest U.S. bank tentatively agreed to pay $75 million to the U.S. Virgin Islands, according to a statement Tuesday — less than half of the $190 million the territory had sought.

JPMorgan also reached a confidential agreement with Staley to resolve the firm’s claims against him.

“JPMorgan Chase believes this settlement is in the best interest of all parties,” JPMorgan said in the statement. “While the settlement does not involve admissions of liability, the firm deeply regrets any association with this man, and would never have continued doing business with him if it believed he was using the bank in any way to commit his heinous crimes.”

Attorneys for Staley did not immediately respond to a request for comment.

The settlements cap nearly a year of public battles over JPMorgan’s ties to Epstein, which had become a reputational headache for the bank. A Jane Doe victim filed a proposed class action against JPMorgan in November, which it agreed to settle for $290 million in June.

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The tentative deal announced Tuesday includes $30 million for U.S. Virgin Islands human trafficking charities and a mental health fund for Epstein survivors, $25 million to enhance local infrastructure and law enforcement to prevent sex crimes, and $20 million in attorneys’ fees.

‘Historic Victory’

“This settlement is an historic victory for survivors and for state enforcement, and it should sound the alarm on Wall Street about banks’ responsibilities under the law to detect and prevent human trafficking,” Attorney General Ariel Smith said in a statement on Tuesday.

The case also marked the first time a state attorney general had filed a sex-trafficking lawsuit, the U.S. Virgin Islands said.

Shares of JPMorgan fell around 1% to $144.79 in late morning trading Tuesday.

The U.S. Virgin Islands filed the suit in December, and weeks later began detailing the contents of some 1,200 emails exchanged between Epstein and Staley, JPMorgan’s one-time private banking chief, over about a decade.

The messages detailed the depth of the relationship between the two men, including exchanges about women, dinners at Epstein’s Manhattan townhouse and networking with world leaders.

In March, JPMorgan took the dramatic step of suing Staley, seeking to hold him liable for damages it incurred over its Epstein ties.

Staley was Epstein’s main contact at JPMorgan, and in addition to the professional connection — Epstein introduced Staley to global and business leaders — their relationship was personal. In one email to Epstein, Staley referred to their friendship as “profound.”