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JPMorgan Sees Third Lawyer Exit in Ex-Banker's 'Sex Slave' Suit

JPMorgan wants a former banker's 'sex slave' lawsuit dismissed after his sister recanted testimony and a third law firm moved to drop him as a client.

By Daniel Okafor

3 min read

JPMorgan asks judge to dismiss ex-banker’s ‘sex slave’ suit as his sister recants and a third law firm seeks to drop him
JPMorgan asks judge to dismiss ex-banker’s ‘sex slave’ suit as his sister recants and a third law firm seeks to drop himAnil Baki Durmus / unsplash

What's News

  • JPMorgan asked a federal judge on Oct. 26 to dismiss the suit, citing 'the most serious sanction available.'
  • Sheharyar Ali Law Group moved to withdraw on Oct. 23, less than 24 hours after appearing as counsel.
  • Rana filed suit in April 2024 against executive director Lorna Hajdini, who countersued for defamation.
  • Three law firms have sought to drop Rana since the case began in the spring.
  • His sister Chandani Rana recanted testimony, saying she never saw the boss act inappropriately.

By Daniel Okafor

JPMorgan has asked a federal judge to dismiss a former banker's sexual harassment lawsuit, arguing his continued misconduct warrants "the most serious sanction available." The bank filed the request in Manhattan federal court on Monday, Oct. 26. Its move came the same week a third law firm asked to stop representing the plaintiff, Chirayu Rana.

What does the new filing say?

JPMorgan told the court that Rana pushed his friend Allan Flott and his sister Chandani Rana to give false sworn testimony. The bank based that claim on an Oct. 26 filing that detailed his sister's account, which she appeared to recant.

"My brother asked me to speak with his attorney. He told me what to say and wrote it down for me beforehand. He was in the room during my conversation with the attorney, and he passed me written notes and whispered to me about what to say," the filing read.

Chandani Rana also stated she has never seen his former JPMorgan boss "engage in any inappropriate, sexual, harassing, threatening, or intoxicated conduct toward my brother or anyone else." JPMorgan declined Fortune's request for comment. Rana could not immediately be reached for comment.

What is the case about?

Rana worked on JPMorgan's leveraged finance team. He filed suit in April accusing Lorna Hajdini, an executive director, of drugging him, insulting him with racial slurs, and forcing him to act as her "sex slave" after he joined her team in 2024. Hajdini and JPMorgan have strongly denied the allegations. Hajdini has also countersued Rana for defamation over his claims.

The case has now shifted from the substance of those allegations to the conduct of the plaintiff himself. Three law firms have moved to drop him since the suit began in the spring. That pace of attorney turnover is rare in federal litigation and complicates Rana's ability to press his claims.

Why did the third law firm quit?

Sheharyar Ali Law Group filed a motion to withdraw counsel on Oct. 23 — less than 24 hours after the New York-based firm filed its motion to appear in the case. The firm said "underlying facts and circumstances of this litigation came to our attention" after it agreed to take it on. It did not specify what it had learned.

"Upon further review and consideration of this information, our firm determined that the circumstances materially differ from our initial understanding of the matter and that withdrawal is appropriate," the court papers read. "Accordingly, we have promptly sought leave to withdraw, less than 24 hours after filing our Notice of Appearance."

The firm asked the court to allow the withdrawal without prejudice to Rana, citing its "limited involvement" and the "promptness of the request being made." Sheharyar Ali Law Group did not immediately respond to Fortune's request for comment.

Who else has dropped Rana?

  • Jon Norinsberg of Joseph & Norinsberg LLC. In an Oct. 14 filing, he cited "irreconcilable differences" that "render it unreasonably difficult" to keep representing Rana. Norinsberg has yet to be formally dismissed from the case.
  • Daniel Kaiser of Kaiser, Saurborn & Mair. Kaiser sought to withdraw in May, months after the suit was filed.

What happens next?

The judge will rule on JPMorgan's dismissal request and on the pending withdrawal motions. If the court grants dismissal, Rana's claims end with a sanction rather than a trial, and Hajdini's defamation countersuit would become the live front in the dispute.

Source: Fortune

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Daniel Okafor

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Correspondent covering money, funding and market shifts around entrepreneurship, startups and venture funding at Business Bearings.

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