Jeffrey Epstein Victims Assail Settlement Process as ‘Disrespectful’

(Bloomberg) -- More than a dozen of Jeffrey Epstein’s victims say they had no input in the selection of the administrator who will set up a fund to resolve claims of sexual assault, and balked at the suggestion that their lawsuits be put on hold while the process moves forward.

Executors of the estate last week outlined plans to establish a compensation fund that would be run by dispute-resolution guru Kenneth Feinberg. Bennett Moskowitz, a lawyer for the estate, said at a court hearing on Thursday that it would probably be helpful if the women’s lawsuit were put on hold while the fund is established.

Roberta Kaplan, one of the women’s lawyers, responded sharply to the suggestion, saying she and colleagues had reached out to discuss potential settlements but had been met with “radio silence” by the estate. She said they had received “zero disclosure” on its assets or the proposed size of the fund, and called their lack of participation in the process “incredibly disrespectful” to Epstein’s victims.

The exchange between the two sides highlights the schism between the estate of Epstein, who died in his prison cell in an apparent suicide in August weeks after he was arrested on sexual trafficking charges, and his accusers. It could serve as a preview of how contentious negotiations could be as the disputes move ahead.

U.S. Magistrate Judge Deborah Freeman in Manhattan urged the parties to engage in serious talks and report back to her in January on the status of their negotiations. While Freeman said both sides appear to be interested in resolving the claims, she said the process has to proceed “where everyone has seats at the table.”

Moskowitz said a compensation fund would be an “extraordinary opportunity” to swiftly resolve claims by Epstein’s victims. “This is not going to be a long, drawn-out thing,” he said. The estate lawyer stressed that victims will retain their rights to pursue litigation if they are not satisfied with the fund’s offers.

In a statement following the hearing, Kaplan said: “It is truly extraordinary that the plaintiffs still have not been consulted about whatever plans the estate has to use Ken Feinberg, or even how much money Mr. Epstein’s brother is willing to set aside.”

To contact the reporter on this story: Chris Dolmetsch in Federal Court in Manhattan at cdolmetsch@bloomberg.net

To contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Anthony Lin

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