Shareholders of Apollo Global Management Ord Shs (NYSE: APO) (FRA: N7I) filed a proposed class action lawsuit in Manhattan federal court on Mar. 2, accusing the company and its co-founders, Leon Black and Marc Rowan, of misleading investors about ties to Jeffrey Epstein.
The plaintiffs, led by investor Solomon Feldman, claim that Apollo and its leaders concealed Epstein’s extensive involvement with the firm for nearly five years through false statements in regulatory filings from 2021 and 2022.
They allege that senior executives downplayed or denied business dealings, despite Epstein’s frequent communications and advisory role in the 2010s. Epstein, the convicted sex offender who died in 2019, maintained deep connections with Apollo through Black, who paid him US$158 million between 2012 and 2017 for tax and estate planning advice.
Black stepped down as CEO in 2021 amid scrutiny over these payments, but the lawsuit highlights broader involvement. Rowan met Epstein multiple times after his 2008 conviction, discussing potential corporate tax strategies like inversions and sharing internal emails on Apollo’s financial matters. Epstein even offered “substantive expertise” on tax assets, though Apollo insists it rejected his services and that the financier never invested in its funds.
Apollo CEO says he is haunted by Epstein
In an interview with Bloomberg this week, Rowan claimed that Apollo’s involvement with Epstein only applied to Black and his dealings with Epstein as a personal tax adviser. This relationship was of concern to the firm due to its partnership structure. He stated that Epstein was continuing to “waste his time from the grave” due to the ongoing controversy.
However, media reports cited in the suit reveal in-person and written exchanges with other executives, contradicting the company’s claims of limited ties confined to Black.
Revelations about these connections triggered significant financial fallout. Apollo’s shares plummeted about 15 per cent over three weeks in February, erasing roughly US$12 billion in market value. The shareholders and investors argue that the concealed ties eroded trust and contributed to these losses.
This scrutiny built upon the U.S. Department of Justice releasing a trove of Epstein-related documents, videos and images on Jan. 30.
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Scandal extends beyond Wall Street
The Epstein files drop and a subsequent “picture day fiasco” in schools across the U.S left many American parents disheartened and disturbed.
Several institutions canceled or postponed school picture days after parents voiced concerns about Lifetouch, a photography company that handles student portraits. Founded in 1936, Lifetouch fell under Apollo’s umbrella through its acquisition of parent company Shutterfly in 2019.
The backlash stemmed from Leon Black’s documented financial links to Epstein, with social media posts amplifying claims that the company was “co-founded by a billionaire named in the Epstein files.”
Community notes on platforms like Facebook clarified the misinformation, noting Black had no founding role in Lifetouch and no direct connection to Epstein’s criminal activities through the business. Despite this, the association fueled parental outrage, leading to disruptions in school events. This consumer-level fallout highlighted how Epstein’s shadow continues to taint Apollo’s indirectly-related subsidiaries.
Apollo oversees more than half a trillion in assets
Apollo Global Management stands as a powerhouse in alternative asset management, overseeing more than US$600 billion in assets as of late 2025.
Founded in 1990 by Black, Rowan, and American investor Joshua Harris, the firm specializes in private equity, credit and real estate. It serves institutional clients like pension funds and sovereign wealth entities.
This week’s lawsuit has emerged as the latest development, building on a Feb. 17 letter from teachers’ unions to the SEC demanding an investigation into Apollo’s “apparent lack of candor.” These included the American Federation of Teachers and American Association of University Professors.
The case remains in early stages, with no immediate resolutions reported at time of writing.
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rowan@mugglehead.com
