Deutsche Bank AG DB has agreed to pay $75 million to settle a proposed class-action lawsuit that accused the financial institution of facilitating Jeffrey Epstein's sex-trafficking ring.
What Happened: Lawyers who sued the bank on behalf of alleged victims announced the settlement, reported The Wall Street Journal.
Last year, an anonymous woman referred to as Jane Doe filed a suit in New York, alleging that Deutsche Bank conducted business with Epstein for five years while being aware of his use of funds to support his sex-trafficking activities.
The plaintiff, who alleged sexual abuse by Epstein and being trafficked to his friends from 2003 to 2018, further accused the bank of disregarding the red flags, such as payments made to numerous young women.
Epstein, awaiting trial on sex-trafficking charges, was found dead in a Manhattan jail in 2019. His death was ruled as suicide.
Deutsche Bank spokesperson Dylan Riddle declined to comment on the settlement.
The $75 million settlement marks the largest sex-trafficking settlement involving a banking institution, according to the plaintiffs' lawyers from the law firms, Boies Schiller Flexner and Edwards Pottinger.
"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," they said in a joint statement.
Why It Matters: The Deutsche Bank complaint is one of two lawsuits targeting banks for their alleged enabling of Epstein's recruitment and exploitation of underage girls and young women, stated WSJ. The second lawsuit, filed against JPMorgan Chase, mirrors similar accusations against the banking giant. JPMorgan was sued by the U.S. Virgin Islands for allegedly facilitating Epstein's sex trafficking and abuse.
The Deutsche Bank settlement came following the bank's decision not to oppose the plaintiff's request to certify the litigation as a class action. A federal judge still needs to approve the agreement.
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