The development came after former investment banker Chirayu Rana accused the company and a senior executive of sexual misconduct, racial harassment, and workplace discrimination.
According to a report in The Wall Street Journal, the largest US bank had offered around $1 million in an effort to settle the dispute. However, the former employee reportedly declined the proposal and sought a higher amount, people familiar with the discussions said.
Lawsuit alleges sexual assault and workplace harassment
The plaintiff, identified in court filings under the placeholder name ‘John Doe,’ filed the lawsuit against JPMorgan and leveraged finance executive Lorna Hajdini, Reuters reported. The complaint alleges that the former banker faced sexual assault, workplace harassment, and racial discrimination during his time at the bank.
The lawsuit claims Hajdini allegedly used her senior position within the company to pressure the employee into non-consensual sexual acts. In addition, the plaintiff alleged that members of the leveraged finance team directed racial slurs toward him during his employment.
According to the filing, the complainant — described as a man of Asian descent living in New York — joined JPMorgan’s leveraged finance division as a senior vice president in March 2024.
Internal complaint and administrative leave
The suit further states that the employee filed an internal complaint with JPMorgan in May 2025, accusing the company of race-based and gender-based discrimination as well as sexual abuse. Following the complaint, the employee was reportedly placed on administrative leave.
JPMorgan said it conducted an internal investigation involving multiple employees and concluded that the allegations lacked merit. The bank also claimed the complainant chose not to participate in the investigation process.
JPMorgan defends its position
JPMorgan said it attempted to reach a confidential agreement in order to avoid prolonged litigation and reputational damage to those involved.
“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 was quoted as saying by Reuters. The company reiterated that it does not believe the claims have merit, adding, “new information raised as a result of the public filing only reinforces that conclusion.”
Plaintiff’s lawyer questions settlement offer
Attorney Daniel Kaiser, who now represents the plaintiff, stated that he was not involved in the earlier settlement negotiations because they took place before he joined the case.
However, Kaiser questioned JPMorgan’s position, saying that in more than three decades as an employment lawyer, he had rarely seen an employer offer such a substantial amount “if they truly believed the allegations to be a ‘complete fabrication.'”
