In Epstein Case JPM Chase Argues against Class Certification Amid Jamie Dimon Deposition

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By Matthew Russell Lee, Patreon Maxwell book

SDNY COURTHOUSE, May 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.

More including class analysis on Substack here

On May 26, Judge Rakoff held oral arguments on class certification. Inner City Press was there, thread here:

All rise!

Judge Rakoff: We're here on the question of class certification... I just got off the phone about a deposition taking place in the same case. You're missing all the fun, folks. (Laughs). Let's first consider Jane Doe's expert...

 Judge Rakoff: The expert writes, "Class certification is appropriate here" - but isn't that a legal conclusion?

Counsel to Jane Doe: Maybe it's a matter of drafting...

Judge Rakoff: I strike that first opinion.

 Counsel to Jane Doe: She is saying that Epstein could only run his sex trafficking conspiracy by having access to influential people. Judge: Duh. What's her expertise? Counsel to Jane Doe: She was at DOJ and interviewed a number of victims

Counsel to Jane Doe: Her experience does not have to be into JPMorgan Chase Bank -- Judge Rakoff: So what is it were Signature Bank?  Counsel to Jane Doe: She looked into banks while at DOJ. [Note: the expert at issue is Jane Khodarkovsky formerly of DOJ]

 JPMC's lawyer: She was 3 1/2 years at DOJ, not in sex trafficking, only money laundering. So she's not an expert.

Judge Rakoff: After 3 1/2 years at DOJ, maybe an expert in bureaucracy... JPMC's lawyer: We say, the issue of sex trafficking is not for class action

Judge Rakoff: The allegations is that Jeffrey Epstein enticed them into sexual acts by getting massages... I don't see why you need to be an expert to see that if the allegations are true, they may will violate the sex trafficking statute

Judge Rakoff: And that if the money to carry it out came from or through a bank that should have known, it may be liable - why is an expert needed on this?

JPM Chase lawyer: The question is, what are the indices of sex trafficking?

Judge: This is not a clean slate

 Judge Rakoff: The grand jury that issued the 2019 indictment found Jeffrey Epstein sexually exploited and abused dozens of minor girls at his various homes. I don't know what the expert's opinion adds to this. Chase lawyer: It's not susceptible to class treatment

 Judge Rakoff: We could have used a psychological expert, as was included in the case before Judge Nathan

JPMC lawyer: Their expert just parrots others' info.  Judge: To your adversary: If you had a frozen pipe, a plumber could opine... But aren't money laundering regulations laws, & the Court the expert?

Doe's lawyer: She is an expert on how trafficking is financed

 Doe's lawyer: She example, she has expertise in the filing or not filing of Suspicious Activities Reports. Judge Rakoff: Are you saying an expert is needed because I have been asleep for the 99 cases on the topic of SARs? Let's turn to class certification...

Judge Rakoff: JPM Chase does not dispute that Mr. Epstein was involved in a longstanding sex trafficking venture that impacted dozens that required money to make it work.  JPMC's lawyer: We're not sure it's dozens- Judge Rakoff: Dozens is what the indictment says

 Doe's lawyer: This class should be certified - it was sexual exploitation and the commonality here is the bank. Epstein needed these obscene amounts of money from JPM Chase to continue with this. I may need a sidebar on this. Judge: About the SARs?

 [Sidebar is held; transcript to be sealed, Judge says]

Judge Rakoff: I have taught the class action seminar at NYU Law School, so I think I know the elements. Thank you, I will get you an order afterword. I'll get called at 5 on the Dimon deposition...

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