Bank of America has reached a settlement in principle with women who accused the bank of facilitating sexual abuse by the late financier Jeffrey Epstein, according to court filings presented to a New York federal judge.

Lawyers for the bank and the plaintiffs told US district judge Jed Rakoff during a 12 March telephone call that they had agreed to resolve the civil case, Reuters reported. The terms of the proposed settlement were not disclosed, and the agreement still requires judicial approval.

Court records show the parties must submit formal settlement papers by 27 March, with a hearing scheduled for 2 April at the Manhattan federal court to determine whether the deal will be approved. If confirmed, the agreement will prevent a trial previously scheduled for 11 May.

The lawsuit was filed in October by a woman identified as Jane Doe, who sought class-action status on behalf of alleged victims of Epstein’s sex trafficking network. The complaint alleged the bank ignored suspicious financial activity connected to Epstein and prioritised profit over protecting victims.

Sigrid McCawley, a lawyer representing the women, said in a statement that “today’s resolution of the case against Bank of America is one more step on the road to much deserved justice”.

Bank of America declined to comment on the proposed settlement.

Earlier in the litigation, Judge Rakoff ruled that the bank must face claims that it knowingly benefited from Epstein’s trafficking operation and obstructed enforcement of the U.S. Trafficking Victims Protection Act. The ruling allowed the case to proceed after plaintiffs argued that the bank processed transactions tied to Epstein despite extensive public information about his conduct.

The case also drew attention to financial links between Epstein and prominent figures. According to Reuters, the plaintiffs highlighted payments made to Epstein by Leon Black, the billionaire co-founder of Apollo Global Management.

Black stepped down as Apollo’s chief executive in 2021 after an external review found he had paid Epstein $158 million for tax and estate planning advice. Black has denied wrongdoing and said he was unaware of Epstein’s criminal activity.

The settlement is expected to cancel a deposition in which Black had been scheduled to testify under oath later in March.

Lawyers representing Epstein’s accusers have previously pursued claims against other financial institutions accused of enabling his activities. In 2023 they secured settlements totalling $290 million with JPMorgan Chase and $75 million with Deutsche Bank.

Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on federal sex trafficking charges. The New York City medical examiner ruled his death a suicide.

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