When I was in London last week, one of my friends there expressed concern that the various Epstein-related revelations involving company executives might lead to D&O claims. I confess that at the time I didn’t really see her point. However, as it has turned out, just days after that conversation, investors filed a new securities suit against Apollo Global Management and its founder and former CEO Leon Black based on Epstein-related allegations. The March 2, 2026, complaint (here) alleges that the defendants misled the company’s investors about the firm’s business dealing with convicted sex offender Jeffrey Epstein.
Background
Apollo is a large American asset management firm. The firm was founded by several financial industry veterans, including Leon Black, who served as the company’s CEO until his departure in March 2021, following revelations at the time concerning his financial and business dealings with Jeffrey Epstein. Epstein is an American financier who was convicted in 2008 of soliciting a minor for prostitution and who committed suicide in 2019 while facing charges of sexual trafficking.
In October 2020, several media reports were published reporting on business and financial relations between Black and Epstein, including communications that allegedly took place after Epstein’s 2008 conviction. The media reports also stated that Apollo’s board was investigating the allegations.
In a late October 2020 earnings call, company representatives stated that “Apollo never did any business with Epstein.” In late January, the company issued a public statement saying that after investigations of the Epstein-related allegations, the investigation’s findings were “consistent with the statements made by Apollo and Mr. Black regarding the prior relationship.” These statements about the investigation were repeated in several of the company’s subsequent SEC filings.
In February 2026, several news reports were published based on alleged revelations in the documents released by the U.S. Department of Justice from the Epstein files. Among other things, the news reports claimed that Epstein had requested and received internal Apollo documents and had called some of the company’s most senior executives on sensitive matters. Among other things, the files allegedly reveal extended communications between Epstein and Mark Rowan, another of Apollo’s founders and Black’s eventual replacement as company CEO. Following this news, and subsequent news reports in which large institutional investors called for an SEC investigation of Apollo concerning the Epstein revelations, the company’s share price declined.
The Lawsuit
On March 2, 2026, a plaintiff shareholder filed a securities class action lawsuit in the Southern District of New York against Apollo, Black, and Rowan. The complaint purports to be filed on behalf of a class of investors who purchased the company’s securities between May 10, 2021, and February 21, 2026.
The complaint alleges that during the class period the defendants made misleading statements or failed to disclose that: “ (1) Defendants Rowan and Black, among other leadership figures at Apollo Global, frequently communicated with Jeffrey Epstein in the 2010s, regarding Apollo Global’s business; (2) as a result, Apollo Global’s assertion that the Company had never done business with Jeffrey Epstein was untrue; and (3) because of the entanglement between Apollo Group’s leaders and Jeffrey Epstein, the harm to Apollo Global’s reputation was more than a mere possibility; and (4) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all times.”
The complaint alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks to recover damages on behalf of the plaintiff class.
Discussion
Among the many disturbing aspects of the revelations from the release of the Epstein files is the number of prominent men (and some women) who had business ties with Epstein, some even after Epstein’s initial conviction. For example, we have all seen and heard about the revelations concerning Prince Andrew and Lord Peter Mandelson, both of whom were arrested recently on Epstein-related criminal charges.
There is a long list of corporate executives whose names have shown up in the Epstein files in various connections, including, among others, Bill Gates; Howard Lutnick (current U.S. Commerce Secretary and formerly of Cantor Fitzgerald); Lesley Wexner (of L Brands); Reid Hoffman; and Peter Thiel. While these are among the most prominent names disclosed so far, there are many other names among the millions of pages in the Epstein files, and further reporting concerning the revelations in the files likely will identify others.
Undoubtedly, the connections among these individuals and Epstein will vary in significance and duration, and the mere fact that a name appears in the files should not be interpreted to signify culpability of any kind. Nevertheless, the revelations have been damaging to reputations both of the individuals involved and, in some cases, of their affiliated companies or institutions.
This case shows how these kinds of revelations can translate into securities litigation. Some people may think that this is just another example of the phenomenon that Bloomberg columnist Matt Levine famously described in his theory that “Everything Everywhere is Securities Fraud.” However, It is important to note that it is not the mere revelation of connections between this company’s senior executives and Epstein that led to the securities suit. The lawsuit is really about what the company said about the relations with Epstein rather than just about the revelations of the connections themselves.
The problem for everyone trying to assess the possibility for further Epstein-related D&O litigation is that the underlying story has much further to go. There are still masses of Epstein-related documents to be disclosed. There are also ongoing disputes about document redactions and even about allegedly missing files.
The Epstein files disclosures are like some kind of slow fuse bomb housing a series of explosive charges. Additional names undoubtedly will surface following future Epstein files document releases. As more names come to light, more companies could find themselves caught up in this debacle. In some cases, the revelations could, as happened here in connection with Apollo, result in further D&O litigation.