Bank of America (BAC) has come under intense scrutiny after reportedly being named in new lawsuits over its alleged financial ties to convicted late sex offender Jeffrey Epstein. The development has put investors on edge, raising concerns about potential legal risks and reputational damage for one of the largest U.S. banks.
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BAC stock declined by 0.11% in after-hours trading on Wednesday as the controversy unfolds and markets weigh the possible fallout. Along with BofA, Bank of New York Mellon (BK) has been sued over ties with Epstein, further widening the scope of legal scrutiny.
New Lawsuits Target Bank of America and BNY Mellon
On Wednesday, new lawsuits against Bank of America and Bank of New York Mellon claim the banks kept doing business with Jeffrey Epstein and didn’t report suspicious activity until after his 2019 death.
These federal class-action suits are led by a woman identified as Jane Doe, representing her and other women who say Epstein abused them. The lawsuits argue that Epstein’s trafficking operation relied on the banks’ special treatment of him and his associates. Moreover, Doe claims the banks knowingly supported Epstein’s sex trafficking operation by providing financial services for years.
Doe is now seeking an unspecified amount in damages from both banks. Notably, Doe is represented by the law firms Boies Schiller and Edwards Henderson, which previously won $75 million and $290 million settlements from Deutsche Bank (DB) and JPMorgan (JPM), respectively, over their alleged financial connections to Epstein.
For context, Jeffrey Epstein was a financier and convicted sex offender known for his connections with powerful figures in business and politics. He faced multiple charges related to sex trafficking before his death in jail in 2019, which sparked global controversy and ongoing investigations.
Is Bank of America Stock a Buy, Sell, or Hold?
BAC stock gained nearly 5% yesterday after the bank reported its Q3 2025 earnings, beating analysts’ estimates.
Looking ahead, Wall Street gives Bank of America stock a Strong Buy consensus, based on 17 Buys and one Hold rating assigned over the past three months. Meanwhile, the average BAC stock price target of $56.38 implies a potential 7.84% upside from the current trading level.
