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U.S. District Judge Jed S. Rakoff has given final approval to Bank of America’s $72.5 million class‑action settlement with women who say the bank ignored suspicious Jeffrey Epstein‑linked transactions. The deal creates a cash fund for claimants, lets the bank deny wrongdoing, and moves the fight from a public trial to a court‑controlled payout. That outcome deserves a hard look — for the victims, for the banks, and for the public trust in our financial system.
What the final approval really means for Epstein accusers and banks
Judge Rakoff’s approval at a Manhattan hearing means the settlement fund will be created and administrators will begin taking claims. Lawyers expect about 60–75 potential claimants to apply. The judge said the payout could provide “substantial” compensation and “justice, even if partial.” That is true — a check can help an individual now. But it is also true that a settlement lets a massive bank keep calling the deal a business decision, not an admission of facilitation of sex trafficking.
Why industry practices and anti‑money‑laundering controls matter
This ruling is part of a string of bank settlements tied to Epstein. JPMorgan reached a much larger agreement, and Deutsche Bank settled too. Those deals highlight a real problem: banks are under scrutiny for failing to flag or stop suspicious transactions. If a big bank can repeatedly pay to avoid a full airing of evidence, the public never gets a clear answer about whether the financial system helped hide crimes or merely failed to act. Regulators and prosecutors should be driving the search for facts — not just civil suits and settlement checks.
We should also talk honestly about the money that doesn’t go to victims. The plaintiffs’ lawyers who brought the case may seek up to 30% in fees. That could be roughly $21.8 million taken from the $72.5 million fund. There’s a role for skilled counsel in these cases. There is also a limit to how soothing it is to see millions diverted to litigation overhead while survivors wait to see what they will get. The public deserves transparency about claims administration and fee petitions so we can judge if justice was served or if the system simply recycled money through lawyers and administrators.
At bottom, this settlement is both progress and problem. Progress, because survivors will be able to seek compensation without another long, painful trial. Problem, because a buyout culture lets institutions pay to move on without admitting any culpability — and that undercuts accountability. If Americans want stronger banks and safer citizens, then regulators must do their jobs: force clearer anti‑money‑laundering rules, hold enablers to account criminally when warranted, and stop letting civil settlements be the only answer. Otherwise, justice becomes something you can purchase at scale — and that’s a poor bargain for a free society.
