JPMorgan offered $1 million to ex-staffer to settle assault claims before lawsuit

A lawsuit filed in a New York court alleges senior JPMorgan executive Lorna Hajdini subjected a former colleague to sexual assault, coercion, racial harassment and workplace intimidation.

In Short

• Ex-banker alleged sexual assault, coercion, racial harassment by executive
• JPMorgan says internal investigation found no evidence supporting allegations
• Lawyer questions substantial settlement offer despite bank denying all allegations

JPMorgan Chase offered USD 1 million to settle sexual assault, harassment and discrimination allegations raised by former investment banker Chirayu Rana before he filed a lawsuit that has since triggered intense scrutiny across Wall Street, according to a report by The Wall Street Journal. The bank’s attempt to resolve the matter privately failed after settlement negotiations broke down, with the former employee reportedly seeking a larger payout.

The lawsuit, filed in New York State Supreme Court and later refiled after being briefly withdrawn for corrections, accuses senior JPMorgan executive Lorna Hajdini of sexual assault, coercion, racial harassment and workplace intimidation.

Rana, who initially filed the case under the pseudonym "John Doe," alleges that Hajdini abused her senior position within the bank’s leveraged finance division to pressure him into repeated sexual encounters and threaten his career prospects.

According to The Wall Street Journal, JPMorgan made the settlement offer earlier this year in an effort to avoid litigation.

Two people familiar with the negotiations told the publication that the bank offered USD 1 million, but the sides failed to reach an agreement.

Confirming the settlement discussions, JPMorgan spokesperson Brian Marchiony said, "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".

He 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".

News agency Reuters separately reported that the bank reiterated it found no evidence supporting the allegations after an internal investigation involving multiple employees.

According to Reuters, JPMorgan said the complainant declined to participate in the probe.

Rana’s lawyer, Daniel Kaiser, disputed the bank’s position. "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," he said, according to Reuters.

The complaint alleges the misconduct began in 2024 after Rana joined JPMorgan’s leveraged finance team as a senior vice president.

Court filings claim Hajdini made repeated sexual advances, used racially charged language and tied Rana’s promotion prospects to compliance with her demands.

THE HARASSMENT ALLEGATIONS

Among the allegations detailed in the lawsuit are claims that Hajdini propositioned Rana inside the office, groped him during work events and threatened retaliation when he rejected her advances.

The suit further alleges that some encounters escalated into sexual assault and that Hajdini made racist remarks targeting his South Asian background.

The complaint also claims Hajdini drugged Rana with Rohypnol and erectile dysfunction medication before engaging in sexual activity with him.

Two anonymous witnesses cited in the revised filing allegedly corroborated portions of his account, including hearing him protest during one incident, according to reports by The Sun and The Daily Mail.

Rana further alleged that after he filed an internal complaint in May 2025 detailing "severe sexual abuse" and discrimination, he faced retaliation, including administrative leave, restricted system access and threatening anonymous calls. One alleged caller reportedly warned him to "stay away" and used racial slurs.

JPMorgan and Hajdini have strongly denied the allegations. Lawyers representing Hajdini said, "Lorna continues to categorically deny the allegations. She never dated this individual, never had a sexual or romantic encounter with him of any kind and never gave him any drugs. She maintains that his false claims are entirely fabricated and tarnishing her reputation".

The bank has maintained that its internal review of emails, devices, records and witness accounts uncovered no evidence supporting the claims. Hajdini remains employed at JPMorgan.

RANA FAKED FATHER’S DEATH

The case has become increasingly controversial following additional reports questioning aspects of Rana’s account. The New York Post reported that Rana allegedly misled JPMorgan into believing his father had died in order to obtain extended paid leave while preparing the lawsuit.

The WSJ also cited organisational records suggesting Rana did not directly report to Hajdini, potentially undermining claims that she controlled his compensation and promotion opportunities.

THE LAWSUIT THAT SENT SHOCKWAVES

The lawsuit has also drawn widespread media attention because of its graphic allegations and the prominence of the individuals involved.

Hajdini, a longtime JPMorgan executive and Harvard Business School alumna, had spent nearly 15 years at the bank without prior public controversy before the case emerged.

Despite the mounting public attention, the legal battle remains in its early stages.

The lawsuit seeks damages for emotional distress, reputational harm, lost earnings and punitive compensation, while also calling for changes to workplace practices at the bank.

With both sides firmly disputing the claims and settlement talks having failed, the dispute now appears headed for a prolonged court fight.

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