JPMorgan reportedly offered former employee $1 million settlement before harassment lawsuit

JPMorgan Chase reportedly offered a former employee a $1 million settlement before he filed a sexual harassment lawsuit against executive Lorna Hajdini, according to a report published by The Wall Street Journal.

The lawsuit, filed in New York by an anonymous plaintiff identified as “John Doe”, accuses Hajdini, an executive director at JPMorgan, of sexual harassment, coercion, abuse and intimidation beginning in 2024. Hajdini has denied all allegations.

According to the report, JPMorgan proposed the settlement in March in an effort to avoid litigation. Sources told The Wall Street Journal that the amount was roughly equivalent to two years of the plaintiff’s compensation at the bank.

The plaintiff did not accept the offer. The report states that his legal team later submitted a counterproposal seeking $11.75 million to resolve the dispute before the lawsuit was filed publicly in late April.

A spokesperson for JPMorgan confirmed to PEOPLE that discussions had taken place but declined to comment on specific negotiations.

“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,” the spokesperson said.

The spokesperson also stated, “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 the complaint, the plaintiff alleges that Hajdini subjected him to repeated unwanted physical contact, sexually explicit remarks and threats connected to his employment after she joined his team in April 2024. He also claims she made racially derogatory comments towards him.

The lawsuit includes exhibits and witness accounts that the plaintiff says support his allegations.

Hajdini’s legal representatives denied the accusations.