A U.S. judge has ruled that JPMorgan Chase & Co. can proceed with its lawsuit against former executive Jes Staley, holding him accountable for allegedly concealing information about financier Jeffrey Epstein. The ruling, made by U.S. District Judge Jed Rakoff in Manhattan, signifies that Staley, the former CEO of Barclays Plc, may face significant financial repercussions for his association with Epstein, who was a JPMorgan client between 1998 and 2013.
Judge Rakoff has yet to provide detailed reasons for his ruling, which grants JPMorgan the opportunity to pursue damages against Staley. The lawsuit contends that Staley failed to disclose his knowledge of Epstein’s illicit activities, and JPMorgan seeks to recover potential losses incurred from its alleged failure to sever ties with the disgraced financier, whom it claims it either knew or should have known was engaging in sexual abuse of young women and girls.
Staley, who is currently 66 years old, has expressed regret over his friendship with Epstein, denied awareness of Epstein’s criminal actions, and accused JPMorgan of making him a scapegoat for its own regulatory oversights. During his tenure, Staley held key positions at JPMorgan, leading the asset management business from 2001 to 2009 and the investment bank from 2009 to 2013.
JPMorgan is seeking compensation from Staley for the period spanning 2006 to 2013, estimated to be in the tens of millions of dollars. Furthermore, it aims to hold him accountable for any losses it may suffer in relation to two ongoing lawsuits. The first is a proposed class action led by Jane Doe 1, a former ballet dancer and an Epstein accuser, while the second is filed by the U.S. Virgin Islands, where Epstein allegedly abused women on his private island. The latter alleges that Staley and Epstein exchanged sexually suggestive emails following Epstein’s guilty plea in 2008.
Judge Rakoff has previously stated that JPMorgan could be held liable if Epstein’s accusers can prove that Staley had firsthand knowledge of Epstein’s involvement in sex trafficking. The trial for all three lawsuits is scheduled for October 23.
Deutsche Bank, where Epstein held accounts between 2013 and 2018, recently reached a $75 million settlement with women who claimed to be victims of Epstein’s abuse. The cases in the U.S. District Court, Southern District of New York are: Jane Doe 1 v JPMorgan Chase & Co, No. 22-10019; Government of the U.S. Virgin Islands v JPMorgan Chase Bank NA, No. 22-10904; and JPMorgan Chase Bank NA v Staley, in Nos. 22-10019 and 22-10904.
