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JPMorgan Chase tried to reach a settlement with a former investment banker before he filed a lawsuit recently making sexual assault and harassment claims, a bank spokesperson said on Wednesday.
The largest U.S. bank offered US$1 million to settle the allegations, the Wall Street Journal reported on Wednesday, citing people familiar with the matter, adding the former banker rejected it and asked for more money.
The plaintiff, who in the lawsuit has the placeholder name John Doe, last week sued JPMorgan and leveraged finance executive Lorna Hajdini, alleging that he was subjected to sexual assault and racial harassment at the bank.
The lawsuit was refiled on Monday in New York state court after being taken down previously. A lawyer for John Doe did not immediately respond to a request for comment.
“While we cannot comment on confidential discussions, we did try to reach an agreement to avoid the time and expense of litigation and to support an employee who was being threatened with the very reputational harm now unfolding,” a spokesperson for JPMorgan said.
“We continue to believe these allegations have no merit and new information raised as a result of the public filing only reinforces that conclusion.”
In his lawsuit, John Doe claimed Hajdini allegedly used her seniority to coerce him into non-consensual sex acts. He also alleged the leveraged finance team directed racial slurs at him.
The complainant, a man of Asian descent residing in New York, joined JPMorgan’s leveraged finance group in March 2024 as a senior vice-president, according to the suit.
In May 2025, the plaintiff filed an internal complaint at JPMorgan, alleging he had been subjected to race- and gender-based discrimination and sexual abuse. John Doe was placed on administrative leave after the complaint was lodged, according to the suit.
JPMorgan has said it did not find any merit to the claims after an internal investigation including numerous employees. The complainant refused to participate in the investigation, according to the bank.
Lawyers for Hajdini have denied the allegations and said the two never had any sexual or romantic relations.
“She maintains that his false claims are entirely fabricated and tarnishing her reputation,” Hajdini’s lawyers said.
Arasu Kannagi Basil and Saeed Azhar, Reuters
If you or someone you know is struggling with sexual assault or trauma, the following resources are available to support people in crisis:
- Call 911 if you are in immediate danger or fear for your safety.
- The Canadian Association of Sexual Assault Centres' website has a comprehensive list of sexual assault centres in Canada that offer information, advocacy and counselling.
- The Ending Violence Association of Canada‘s website has links to helplines, support services and locations across Canada that offer sexual assault kits.
- Indian Residential School Survivors Society crisis lines: +1 866 925 4419 or +1 800 721 0066 (24/7)
- Toronto Rape Crisis Centre crisis line: +1 416 597 8808 (24/7)
- Canadian Human Trafficking Hotline: +1 833 900 1010 (24/7)
- Trans Lifeline: +1 877 330 6366
