Stock Markets January 29, 2026

Judge Allows Some Claims Against Bank of America in Epstein-Related Lawsuit; BNY Mellon Cleared

Manhattan judge permits two causes of action to proceed against Bank of America while dismissing the suit against Bank of New York Mellon; trial set for May

By Derek Hwang BAC BK JPM DB
Judge Allows Some Claims Against Bank of America in Epstein-Related Lawsuit; BNY Mellon Cleared
BAC BK JPM DB

A federal judge in Manhattan ruled that certain allegations in a proposed class action by survivors of Jeffrey Epstein may move forward against Bank of America, while dismissing an identical suit against Bank of New York Mellon. The decision narrows the case against Bank of America to two counts related to knowingly benefiting from and obstructing enforcement of the Trafficking Victims Protection Act. A trial for Bank of America is scheduled for May 11; the judge will issue a detailed opinion by February 13.

Key Points

  • A federal judge in Manhattan allowed two claims to proceed against Bank of America related to allegedly benefiting from and obstructing enforcement of the Trafficking Victims Protection Act.
  • All six claims against Bank of New York Mellon were dismissed by the same judge.
  • A trial involving Bank of America is scheduled for May 11, and a written opinion explaining the rulings is expected by February 13.

A U.S. district court judge in Manhattan has allowed parts of a proposed class action brought by an Epstein accuser to continue against Bank of America, while dismissing a parallel suit against Bank of New York Mellon.

U.S. District Judge Jed Rakoff on Thursday ruled that accusers may pursue two claims against Bank of America - the second-largest U.S. bank - that it knowingly benefited from Jeffrey Epstein’s sex trafficking and that it obstructed enforcement of the federal Trafficking Victims Protection Act. At the same time, Rakoff rejected four other causes of action that had been leveled at the bank.

The four dismissed claims included allegations that Bank of America participated in and aided Epstein’s sex trafficking, that it negligently failed to protect victims, and that the bank provided "non-routine" banking services to Epstein in violation of duties alleged in the complaint.

Bank of New York Mellon, the world’s largest custodial bank, prevailed in having all six claims in the complaint against it dismissed, Rakoff said. He indicated he will publish a written opinion explaining his reasoning on or before February 13.


Case background and court schedule

The lawsuits were filed in October by a Florida plaintiff identified as Jane Doe on behalf of herself and other accusers. The complaint alleges that both banks continued to do business with Epstein despite public awareness of his misconduct, and that they prioritized profits over protecting victims. The plaintiff's legal team said that, by maintaining banking relationships with Epstein until his arrest in July 2019, the banks knowingly aided his activities.

A trial involving Bank of America is set to begin on May 11, according to the court docket noted in the decision.


Reactions from the parties

Bank of America issued a statement expressing satisfaction that the scope of claims against it had been narrowed, adding: "We look forward to a full review of the facts." Bank of New York Mellon said the dismissal "reinforces that BNY had no involvement in Epstein’s crimes."

David Boies, an attorney for the plaintiff, said he anticipates the Bank of America trial and intends to appeal the dismissal in the BNY Mellon case.


Allegations, prior settlements and context in the litigation

The complaint against Bank of America reiterated previously publicized allegations about Epstein’s financial and social ties to prominent figures. The suit against BNY Mellon included an assertion that the bank processed hundreds of millions of dollars in wire transfers on Epstein’s behalf. Both complaints further alleged failures to file timely suspicious activity reports with the U.S. Treasury Department.

Earlier litigation by the plaintiff’s lawyers produced settlements in 2023 with two of Epstein’s former banks: a $290 million settlement with JPMorgan Chase and a $75 million settlement with Deutsche Bank. Neither bank admitted wrongdoing in those settlements, which were approved by Judge Rakoff.

Jeffrey Epstein died in a Manhattan jail cell in August 2019 while awaiting federal sex trafficking trial. New York City’s medical examiner ruled the death a suicide.

Risks

  • Outcome uncertainty for Bank of America as the case proceeds to trial - impacts banking sector legal exposure and investor perceptions.
  • Potential appeals process following dismissals could prolong litigation and legal costs for the parties involved - affects legal and compliance functions within banks.
  • Reputational risk for banks tied to clients accused of criminal wrongdoing, which can influence customer trust and regulatory scrutiny across the financial services industry.

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