SKN | JPMorgan Sexual Harassment Lawsuit Dismissed Without Prejudice as Refiling Planned in Federal Court

Key Takeaways:

• A New York state judge dismissed a lawsuit filed by a former JPMorgan Chase banker after the plaintiff requested the dismissal.
• The plaintiff’s legal team has indicated that the claims are expected to be refiled in federal court with additional allegations under federal employment and civil rights laws.
• A defamation countersuit filed by the former colleague named in the case remains active in New York state court.

State Court Case Dismissed at Plaintiff’s Request

A New York state judge has dismissed a lawsuit brought by former JPMorgan Chase banker Chirayu Rana against the bank and a former colleague after Rana requested that the case be withdrawn from state court.

Under the court’s order, Rana will pay certain legal fees incurred by JPMorgan Chase and former colleague Lorna Hajdini as a condition of the dismissal. The ruling does not resolve the underlying allegations, and the dismissal was made without preventing the plaintiff from pursuing the claims in another court.

The dismissal does not affect Hajdini’s separate defamation countersuit, which remains pending in the New York State Supreme Court in Manhattan.

Federal Refiling Expected

Rana originally filed the lawsuit in April, alleging that Hajdini used her position of seniority to coerce him into non-consensual sexual activity over several months while they worked at JPMorgan Chase.

The complaint also alleged that Hajdini used racially derogatory language, threatened his career advancement, and engaged in other serious misconduct. Hajdini has denied all allegations, including claims that she supervised Rana, used racial slurs, or threatened him in any manner.

Following a change in legal representation, Rana’s new attorneys have indicated they intend to refile the case in federal court. The planned complaint is expected to include additional claims under federal anti-discrimination and retaliation statutes, as well as the Family and Medical Leave Act, alongside previously asserted claims.

Defamation Claim Continues Separately

While the plaintiff’s lawsuit has been dismissed from state court, Hajdini’s defamation countersuit remains active.

According to court filings, Hajdini alleges that Rana made false and malicious accusations that caused significant personal and professional harm. She contends the allegations generated widespread public attention and damaged her reputation. Rana’s legal claims and Hajdini’s defamation action are expected to proceed independently through separate legal processes.

JPMorgan Maintains Its Position

JPMorgan Chase has consistently disputed the allegations made in the original complaint, stating that it believes the claims lack merit.

The bank has not indicated any change in its position following the dismissal and is expected to respond to any future federal filing through the normal judicial process.

Because the litigation remains ongoing, none of the allegations have been adjudicated on their merits, and no findings of liability have been made against any party.

Legal Process Moves to the Next Stage

The anticipated federal filing could broaden the scope of the litigation by introducing claims under federal employment and civil rights laws. As the matter progresses, future proceedings may address jurisdictional issues, procedural motions, and the underlying factual disputes before any determination is reached.

Investors generally monitor litigation involving major financial institutions for potential legal, reputational, or regulatory implications, although individual employment disputes typically have limited direct financial impact unless they develop into broader corporate governance or compliance matters.

Closing Insights

The dismissal of the state court lawsuit marks a procedural step rather than a resolution of the dispute. With the plaintiff expected to refile in federal court and the defendant’s defamation countersuit continuing in New York state court, the legal proceedings remain active. As with all ongoing litigation, the allegations remain contested, and the courts have not reached any conclusions regarding the merits of the claims.

For a confidential discussion regarding banking governance, employment law risk, corporate compliance frameworks, workplace conduct policies, or enterprise risk management strategies, contact our senior advisory team.