Inside JPMorgan’s $290M sex-trafficking settlement: What it means for Jeffrey Epstein survivors

Epstein at Little St. Jeff

Jeffrey Epstein and his Virgin Islands home (Photos via DOJ)

A little more than a week after their $290 million deal became public, Jeffrey Epstein survivors released the terms of their proposed settlement with JPMorgan Chase to resolve their sex trafficking lawsuit. The fine print reveals some of the surprising ramifications of the agreement beyond the whopping, bottom-line figure.

Like many settlements of its kind, the Epstein survivors’ agreement does not force JPMorgan to admit to knowingly facilitating the sex offender’s crimes. That fact, while potentially disappointing to some, is neither unusual nor unexpected.

“That is standard operating procedure,” said former federal prosecutor Mitchell Epner, who led intake for sex trafficking cases in the District of New Jersey in the 2000s.

Other provisions of the 37-page page stipulation of settlement, however, emphasize the sweeping nature of this victory for the survivors, an expert tells Law&Crime.

Opt-outs

In class action lawsuits, settlement agreements often allow for survivors to opt out, potentially to advance their separate lawsuits. Such opt-out clauses often stipulate a minimum percentage of the class that have to opt-in for the settlement to be effective.

This one does not, leaving few constraints for survivors on their desired outcome.

“It’s a calculus that goes on about whether it makes sense to opt-in or opt-out because you can’t know in advance what your award will be because you can’t know how many people will be opting in,” said Epner, who is now a partner at Rottenberg Lipman Rich PC.

JPMorgan itself estimated that 137 people applied to the Epstein Victims Compensation Program (EVCP), but not all of them were allegedly abused by Epstein when he was a JPMorgan client: between 1998 and 2013.

The class period in the agreements spans between Jan. 1, 1998, through Epstein’s jailhouse death on Aug. 10, 2019, on the theory that the bank’s alleged failure to share what it knew with law enforcement enabled his abuse long after JPMorgan cut ties with their predator client.

Survivors are likely to find the settlement attractive, however: Beyond the large payout, the money would be separate from any they might receive from the EVCP, meaning collecting from it won’t affect that other compensation.

‘All in’

As a so-called “global settlement agreement,” the $290 million figure includes attorneys’ fees and the costs of administration. In Epner’s words, it’s “all in.”

“JPMorgan is done with whatever liability they’re going to have here,” he added.

The Epstein survivors have been represented by powerhouse attorneys who have been familiar figures throughout the saga, including David Boies, Sigrid McCawley and Brad Edwards. Collectively, they are seeking up to 30% of the settlement, plus expenses, charges and interest.

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