New York City: JPMorgan Chase reportedly offered USD 1 million to settle allegations of sexual assault, harassment, and workplace discrimination raised by former investment banker Chirayu Rana before a lawsuit was formally filed, according to a report by The Wall Street Journal.
The settlement discussions reportedly failed after negotiations broke down, with Rana allegedly seeking a larger payout. The case has since drawn significant attention across Wall Street due to the seriousness of the allegations and the seniority of the individuals involved.
Lawsuit accuses senior executive of misconduct
The lawsuit, initially filed in New York State Supreme Court under the pseudonym “John Doe” and later refiled after procedural corrections, accuses senior JPMorgan executive Lorna Hajdini of sexual assault, coercion, racial harassment, and workplace intimidation.
According to the complaint, Rana alleges that Hajdini used her senior position within the bank’s leveraged finance division to pressure him into repeated sexual encounters and allegedly threatened his professional future.
Court filings claim the alleged misconduct began in 2024 after Rana joined the leveraged finance team as a senior vice president.
The complaint further alleges that Hajdini made repeated advances, used racially offensive language targeting his South Asian background, and tied career progression opportunities to compliance with her demands.
JPMorgan confirms settlement discussions
According to The Wall Street Journal, the bank attempted to resolve the dispute privately earlier this year in order to avoid litigation.
Two individuals familiar with the negotiations reportedly stated that JPMorgan offered USD 1 million during settlement discussions.
JPMorgan spokesperson Brian Marchiony confirmed that discussions took place.
“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,” Marchiony said.
He added that the bank continues to believe the allegations lack merit.
“We continue to believe these allegations have no merit, and new information raised as a result of the public filing only reinforces that conclusion,” he stated.
Bank says internal investigation found no evidence
According to reports by Reuters, JPMorgan stated that an internal investigation involving multiple employees found no evidence supporting the allegations.
The bank reportedly reviewed emails, electronic devices, internal records, and witness accounts during the probe.
Reuters further reported that JPMorgan claimed Rana declined to participate in parts of the internal investigation process.
However, 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,” Kaiser reportedly said.
Graphic allegations detailed in complaint
The lawsuit contains several serious and graphic allegations.
According to the complaint, Hajdini allegedly propositioned Rana inside the workplace, groped him during professional events, and threatened retaliation when he rejected her advances.
The suit further claims some incidents escalated into sexual assault.
Among the most serious allegations are claims that Hajdini drugged Rana with Rohypnol and erectile dysfunction medication before engaging in sexual activity with him.
Reports by tabloids including The Sun and Daily Mail stated that anonymous witnesses cited in revised filings allegedly corroborated portions of Rana’s account.
Retaliation allegations also raised
Rana additionally alleged that after filing an internal complaint in May 2025 detailing alleged sexual abuse and discrimination, he faced retaliation inside the organisation.
The complaint claims he was placed on administrative leave, faced restricted system access, and received threatening anonymous calls containing racial slurs.
One alleged caller reportedly warned him to “stay away”.
The lawsuit seeks damages for:
- Emotional distress
- Reputational harm
- Lost earnings
- Punitive compensation
It also reportedly seeks workplace policy reforms at the bank.
Hajdini strongly denies allegations
Lawyers representing Hajdini have categorically denied all allegations made in the lawsuit.
“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,” her legal representatives stated.
They further described the claims as “entirely fabricated” and damaging to her reputation.
JPMorgan has maintained that its internal review uncovered no evidence supporting the allegations. Hajdini reportedly remains employed at the bank.
Additional controversy surrounds case
The dispute has become increasingly controversial following separate reports questioning aspects of Rana’s conduct and credibility.
New York Post reported that Rana allegedly misled JPMorgan into believing his father had died in order to secure extended paid leave while preparing the lawsuit.
The Wall Street Journal also cited organisational records suggesting Rana may not have directly reported to Hajdini, potentially complicating allegations that she controlled his promotions and compensation.
Case expected to continue in court
The lawsuit has generated widespread media attention due to the prominence of the parties involved and the nature of the allegations.
Hajdini, a longtime JPMorgan executive and graduate of Harvard Business School, reportedly spent nearly 15 years at the bank without previous public controversy.
Legal experts expect the dispute to evolve into a prolonged court battle, particularly after settlement discussions failed to produce an agreement.
With both sides firmly denying each other’s claims, the case is expected to remain under close scrutiny in both legal and financial circles.