By Matthew Russell Lee, Patreon Maxwell book
SDNY COURTHOUSE, June 26 – J.P. Morgan Chase and Deutsche Bank were sued for their enabling of Jeffrey Epstein, in lawsuits filed on Thanksgiving 2022 in the U.S. District Court for the Southern District of New York, where Inner City Press found them in the docket.
Late on May 17, 2023, plaintiffs' lawyer David Boies selectively announced a $75 million settlement with Deutsche Bank. Nothing was filed in the docket. But the pressure on JPM Chase, and its CEO Dimon, grew.
On June 12, 2023, again while nothing in the docket, JPMorgan Chase said it had reached a settlement in a class action lawsuit with victims of Jeffrey Epstein. "The parties believe this settlement is in the best interests of all parties, especially the survivors who were the victims of Epstein’s terrible abuse, the bank said in a statement. Inner City Press asked, on June 12, will the USVI too fold their tent?
The answer seems to remain "No." On June 26, while JPM Chase told Judge Rakoff that the proposed settlement would not release claims of sovereigns, counsel for the USVI pointed to a provision of the proposed settlement.
Judge Rakoff said it was a run-on sentence a la William Faulkner, but that the issue should be conferred about and addressed. Inner City Press live tweeted, thread here:
OK - now at Epstein victims' preliminary fairness hearing on settlement with JPM Chase. USVI is concerned it would release claims of sovereigns
Judge Rakoff: It seems this sentence was written by William Faulkner, it runs on. But this could be fixed.
JPM Chase: We do say, To the extent permitted by law... USVI: If we have a recovery, the class members couldn't collect. Judge: The settlements are large
USVI: Not all of the 250 or 300 victims will file...
More on Substack here.
Watch this site.
More class analysis on Substack here
On May 26, Judge Rakoff held oral arguments on class certification, noting that Dimon's deposition was taking place at that time. Inner City Press was there, thread here and below.
On May 31, Inner City Press published the Dimon deposition, on Patreon here.
On June 5, Judge Rakoff's chambers docketed this, from June 2: "Minute Entry for proceedings held before Judge Jed S. Rakoff: Telephone Conference held on 6/2/2023, without transcription or recording. Counsel for Jane Doe, the U.S. Virgin Islands, JP Morgan Chase, and Mr. Staley were present. Mr. Staleys unopposed application for JP Morgan to disclose its correspondence with six third parties in connection with its subpoenas to those third parties is granted. JP Morgans application for Jane Doe to make corresponding disclosures of correspondence relating to third party subpoenas to the same parties is denied, without prejudice to JP Morgans renewing the request should it be able to show a particularized need taking into account the current status of discovery. Mr. Staleys request for a computation of the damages JP Morgan intends to assert against Mr. Staley in the form of its costs of defending the actions by Jane Doe and the U.S. Virgin Islands, as well as for JP Morgan to make available the documents on which any such computation is based, is granted, subject to appropriate withholdings for privilege. JP Morgan is directed to make such production by EOD on Friday, June 16. This production should be made to Mr. Staley only, and any confidentiality designation made in connection with this production shall suffice to prohibit disclosure to Jane Doe and the U.S. Virgin Islands."
More on Substack here.
On June 6, Judge Rakoff issued a revised schedule: "Third-Party Defendant James Edward Staley's Answer to JP Morgan's Complaint must be filed by June 7, 2023. Post-discovery judgment motions (except as respecting third-party claims) due by 8/15/2023. Responses due by 8/31/2023 Replies due by 9/7/2023. Deposition due by 8/8/2023. Fact Discovery (including deposition of fact witnesses) due by 7/18/2023. Expert Discovery due by 8/8/2023. Final Pretrial Conference, as well as oral argument, set for 7/28/2023 at 02:00 PM before Judge Jed S. Rakoff. Ready for Trial by 10/23/2023. Oral Argument set for 9/14/2023 at 04:00 PM before Judge Jed S. Rakoff. (Signed by Judge Jed S. Rakoff on 6/6/2023)
On June 7, 2023, Staley filed his answer, including that "the incidents in question... were caused by the superseding and intervening acts of parties over whom Mr. Staley had no right of control."
On May 19, Jes Staley's lawyer argued before Judge Jed S. Rakoff to dismiss JPM Chase's claim against him; Chase opposed. Inner City Press was there, live tweeted thread here and below.
Judge Rakoff: I agree Congressional silence is not a basis for reaching a definitive conclusion. They are talkative.. I am joking
JPM's lawyer: Even if there was no contribution, supplemental jurisdiction, they can stay in - they have already been present at depositions. It's judicial economy. Judge Rakoff: I've heard what I need.
Judge Rakoff: I'll get you at least a bottom line opinion by the end of this month. Mr Staley should know by May 31. Anything else? No? If you would clear out, I have a 4 pm matter.
More on Substack here.
The JPM Chase complaint is on Patreon, here.
On March 20, 2023 Judge Jed S. Rakoff in a bottom line order dismissed some but not all claims, in the Epstein-related cases against JPMC and Deutsche Bank.
On April 28, a motion seeking class certification of Epstein-related claims against JPMC was filed; filing on Patreon here.
On May 8, the US Virgin Islands filed with Judge Rakoff to strike JPM Chase's equitable defenses, including tis "fault-shifting" defense, arguing that "it is well established within the Second Circuit and elsewhere that government plaintiffs suing to vindicate public rights are not subject to equitable defenses that may be invoked against private plaintiffs." Full filing on Patreon here.
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