JPMorgan Chase attempted to negotiate a settlement with a former investment banker before he proceeded with a lawsuit alleging sexual assault and harassment, according to a bank representative who spoke Wednesday.
According to the Wall Street Journal, the nation’s largest bank proposed a $1 million settlement to resolve the allegations, citing sources with knowledge of the discussions. The report indicated the former banker turned down the offer and sought additional compensation.
The former employee, identified in court documents as John Doe, filed suit against JPMorgan and leveraged finance executive Lorna Hajdini last week. His lawsuit claims he experienced sexual assault and racial harassment during his employment at the financial institution.
After being previously withdrawn, the legal action was refiled Monday in New York state court.
“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 JPMorgan representative stated.
The spokesperson added: “We continue to believe these allegations have no merit and new information raised as a result of the public filing only reinforces that conclusion.”
Daniel Kaiser, the attorney representing Doe, confirmed to Reuters via email that he was not part of the settlement negotiations, which occurred before he took on the case.
“However, I will note that in my 30-plus year career as an employment litigator I have never had an employer defendant make such a substantial offer if they truly believed the allegations to be a ‘complete fabrication,’” Kaiser stated.
According to the lawsuit, Doe alleges that Hajdini exploited her position of authority to force him into unwanted sexual encounters. The complaint also claims members of the leveraged finance team used racist language against him.
The plaintiff, described as a New York resident of Asian heritage, began working in JPMorgan’s leveraged finance division in March 2024 as a senior vice president, court documents show.
In May 2025, the employee filed an internal grievance with JPMorgan, claiming he faced discrimination based on race and gender, as well as sexual abuse. Following his complaint, John Doe was put on administrative leave, the lawsuit states.
JPMorgan reported finding no validity to the accusations following an internal review that involved multiple staff members. The bank stated the complainant declined to cooperate with their investigation.
Legal representatives for Hajdini have rejected the accusations and stated the two individuals never engaged in any intimate or romantic relationship.
“She maintains that his false claims are entirely fabricated and tarnishing her reputation,” Hajdini’s legal team said.
