JPMorgan Chase offered a $1 million settlement to a former investment banker weeks before he filed a lawsuit containing explosive allegations of sexual assault, racial discrimination and workplace harassment that later spread widely across social media, according to a report by The Wall Street Journal.

The report said the settlement offer was made to Chirayu Rana, a former senior vice president in JPMorgan’s leveraged finance division, in an effort to avoid lengthy and public litigation. Rana ultimately rejected the offer and later sought a significantly larger payout, people familiar with the matter told the newspaper.

Rana’s lawsuit, initially filed anonymously in New York state court under the pseudonym John Doe and refiled earlier this week after briefly disappearing from the court docket, accused a senior female colleague, identified as Lorna Hajdini, of repeatedly sexually assaulting him and threatening to damage his career if he refused her demands.

The suit also alleged that Rana faced racial discrimination and race-based harassment linked to his Nepalese background while working at the bank.

JPMorgan has denied the allegations and said an internal investigation involving multiple employees found no merit to the claims.

In a statement quoted by the Wall Street Journal, a JPMorgan spokesman said the bank attempted to reach a settlement “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 bank added that new information emerging after the public filing further reinforced its conclusion that the allegations lacked merit.

Lawyers representing Hajdini also strongly denied the accusations, saying she “never dated this individual, never had a sexual or romantic encounter with him of any kind and never gave him any drugs.” They described Rana’s allegations as “entirely fabricated” and damaging to her reputation.

The allegations gained widespread attention online after media reports surfaced about the lawsuit. AI-generated videos recreating scenes and dialogue from the complaint circulated on platforms including X and Instagram, while commentators and podcasters such as Joe Rogan and Megyn Kelly publicly discussed the case.

According to the report, JPMorgan’s proposed $1 million settlement amounted to less than two years of Rana’s compensation at the bank. Rana reportedly did not immediately accept or reject the offer.

Rana joined JPMorgan in May 2024 as a senior vice president responsible for originating new loans within the bank’s leveraged finance team. In May 2025, he filed an internal complaint with the bank’s human resources department alleging sexual assault, discrimination and racial harassment by fellow employees.

The lawsuit claimed Rana was subjected to racially charged insults and sexually assaulted multiple times by a senior-ranking female colleague.

After the complaint was filed, Rana was placed on paid leave while the bank launched an internal review. The Wall Street Journal reported that investigators spent months examining the allegations but struggled to find specific evidence corroborating the claims. JPMorgan has also said Rana did not cooperate with parts of the investigation.

Rana later left JPMorgan and joined private equity firm Bregal Sagemount in October 2025, according to people familiar with the matter.

The report said mediation talks between Rana’s legal team and JPMorgan began in early 2026. In March, the bank formally offered the $1 million settlement.

Rana subsequently filed a discrimination complaint against JPMorgan with the US Equal Employment Opportunity Commission at the end of March.

In early April, Rana was dismissed from Bregal Sagemount. The firm said it was unaware during his employment of any complaints he had filed against former employers or individuals.

The Wall Street Journal reported that Rana’s lawyers later countered JPMorgan’s settlement proposal with a demand for $11.75 million.

The refiled lawsuit includes affidavits from two unnamed witnesses who claimed they had seen Rana and Hajdini together in what they described as a romantic context.

Rana’s lawyer, Daniel Kaiser, said the original filing had not been withdrawn but temporarily removed because court approval was required for a pseudonymous filing.

The lawsuit contains graphic allegations, including claims that the senior banker repeatedly pressured Rana into sexual acts while threatening to derail his promotion prospects and career advancement.

One section of the complaint alleged the woman told Rana: “If you don’t f— me soon, I’m going to ruin you,” while another passage claimed she pressured him by promising promotions and bonuses in exchange for sexual acts.

Hajdini’s lawyers reiterated through a JPMorgan spokesman that all allegations against her were categorically false.