Judge Lets Epstein Bank Lawsuit Proceed Against Bank Of America

In a high-profile legal battle that continues to reverberate through the U.S. financial sector, victims of Jeffrey Epstein’s sex trafficking operation have secured a partial victory against Bank of America, while a similar case against Bank of New York Mellon (BNY) has been dismissed. The ruling, handed down by U.S. District Judge Jed Rakoff in Manhattan on January 29, 2026, marks a significant moment in the ongoing quest for accountability in one of the most notorious criminal scandals of recent decades.

Epstein, the disgraced financier who died by suicide in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges, left behind a tangled web of alleged enablers and institutions. According to Reuters, the lawsuits against Bank of America and BNY were filed in October 2025 by a Florida woman known as Jane Doe, on behalf of herself and other Epstein accusers. The plaintiffs alleged that the banks ignored widespread knowledge of Epstein’s misconduct and continued to do business with him until his arrest in July 2019, prioritizing profits over the protection of victims.

Judge Rakoff’s ruling allows two claims against Bank of America to move forward: that the bank knowingly benefited from Epstein’s sex trafficking and that it obstructed enforcement of the federal Trafficking Victims Protection Act. However, Rakoff rejected four other claims, including allegations that Bank of America participated in or aided Epstein’s sex trafficking operation, and that it negligently failed to protect victims or refrain from providing “non-routine” banking services. The judge’s decision means that while Bank of America is not being accused of directly participating in Epstein’s crimes, it will have to answer to allegations that it was a knowing beneficiary of his operation.

In contrast, the entirety of the case against BNY was dismissed. The lawsuit had claimed that BNY ignored red flags while processing Epstein’s wire transfers and extended credit to a modeling agency financed by Epstein and owned by Jean-Luc Brunel, who died in a French prison in 2022 while awaiting trial for rape charges. Rakoff dismissed the BNY case with prejudice, meaning the plaintiffs cannot file another amended complaint against the bank. He plans to issue an opinion explaining his reasoning by February 13, 2026.

David Boies, a prominent attorney representing the Epstein victims, responded to the mixed ruling with both optimism and resolve. "We are pleased that the Court sustained our sex trafficking claims against Bank of America, and we look forward to trying that case in May," Boies stated, as reported by Business Insider. He added, "We respectfully disagree with the Court's dismissal of the complaint against Bank of New York Mellon and we will seek appellate review."

Bank of America, for its part, emphasized the narrowing of the case. Spokesperson Bill Haldin told Reuters, "We are pleased the court dismissed most of the claims. On the remaining claims, it's important to understand the underlying facts have not been reviewed at this stage of the litigation." The bank’s legal team has maintained that it provided only "routine banking services" to Epstein, and that the allegations amount to nothing more than servicing high-net-worth clients.

BNY, meanwhile, expressed satisfaction with the outcome. In a statement to Business Insider, BNY spokesperson Ryan Wells said, "We are pleased with the court's decision dismissing the lawsuit in its entirety, which reinforces that BNY had no involvement in Epstein's crimes. BNY has great sympathy for the victims of Jeffrey Epstein and believes his crimes should be fully investigated and prosecuted."

The lawsuits against Bank of America and BNY follow a pattern established in earlier litigation against other major banks that handled Epstein’s finances. In 2023, attorneys for Epstein’s victims reached settlements totaling $290 million with JPMorgan Chase and $75 million with Deutsche Bank. Neither bank admitted wrongdoing, but the settlements underscored the potential liability institutions face for failing to act on suspicious activity linked to high-profile clients. Judge Rakoff approved both settlements, according to Reuters.

The Bank of America case is now on a fast track, with a trial scheduled for May 11, 2026. Judge Rakoff has set deadlines for summary judgment in the spring, which could give the bank another opportunity to seek dismissal before trial. The judge had previously expressed skepticism about the strength of these lawsuits, describing them as "a model of high-pitched rhetoric" and contrasting them with the more detailed allegations in the cases against JPMorgan Chase and Deutsche Bank. Nevertheless, the revised complaints against Bank of America and BNY were filed after Rakoff gave the plaintiffs two weeks to add more detail during a December hearing. Despite these amendments, the judge found the BNY case lacking but allowed the Bank of America case to proceed in part.

Central to the allegations against Bank of America is the claim that it facilitated millions of dollars in transactions for Epstein, including over $170 million from former Apollo CEO Leon Black, who has stated he paid Epstein for tax advice. The plaintiffs allege that some of these funds were used to pay hush money to victims. The lawsuits also accused both banks of failing to file timely suspicious activity reports with the U.S. Treasury Department, a critical requirement meant to flag potentially illegal activity.

As these civil cases unfold, pressure is mounting on the Department of Justice (DOJ) to release its internal files related to Epstein. The DOJ missed a December 19, 2025 deadline mandated by the Epstein Files Transparency Act, passed in November, which required the release of all relevant files. Victims and members of Congress have called for the appointment of an independent monitor to oversee the release, but judges have stated they lack the authority to make such an appointment. In a court filing on January 27, 2026, Attorney General Pam Bondi said the department had reviewed "millions of pages of materials, applying redactions as appropriate" and would publish them "in the near term."

The legal and political battles surrounding the Epstein case continue to captivate and disturb the public, shining a harsh light on the responsibilities of powerful financial institutions and the ability of victims to seek justice. As the May trial date approaches, all eyes will be on the Manhattan courthouse, where the next chapter in this saga will play out. For Epstein’s victims, the partial victory against Bank of America represents a step forward—albeit a complicated and hard-fought one—on the long road to accountability.