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JPMorgan Faces $1M Settlement Over 'Sex Slave' Allegations

Financial Times Companies •
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A salacious lawsuit from a former JPMorgan leveraged‑finance banker has ignited a frenzy on Wall Street. The former employee, named Chirayu Rana, accuses Lorna Hajdini of turning him into an “office sex slave” and alleges drugging, racial insults and career sabotage. The case emerged after a $1 million settlement offer from JPMorgan before he filed the lawsuit.

The allegation surfaced in a New York court filing where Rana, initially anonymous as “John Doe,” detailed alleged advances, a date‑rape drug and his wife’s racial slurs. JPMorgan’s spokesperson denied any misconduct, saying internal reviews found no evidence. The bank claims it tried to settle the dispute to avoid costly litigation and preserve its reputation today.

JPMorgan says the $1 million offer was a gesture to protect an employee from reputational harm, not an admission of guilt. Critics argue the settlement reflects the bank’s desire to silence a whistle‑blower amid a broader reckoning over gender dynamics in finance. The lawsuit now faces a fresh complaint citing two witnesses that support his claims.

The case has sparked memes, podcast discussions and a chorus of internal support for Hajdini. Analysts warn that the dispute could dent JPMorgan’s brand and affect its leveraged‑finance revenue streams. With no definitive evidence yet, investors will watch how the bank navigates the legal and reputational fallout until the court delivers a verdict in the near future.