Erika Jayne Attempting to Settle $25 Million Lawsuit in Disgraced Husband Tom’s Bankruptcy
June 9 2023, Published 1:00 p.m. ET
Real Housewives of Beverly Hills star Erika Jayne is attempting to hash out a settlement in the $25 million legal battle over money her estranged husband Tom Girardi’s law firm spent on her, RadarOnline.com has learned.
According to court documents obtained by RadarOnline.com, the Bravo star and the trustee presiding over the bankruptcy for Girardi’s law firm have informed the court they are in active talks to resolve the case.
The parties asked the court to push the next hearing from June 6 to August 8.
As we first reported, in 2020, Girardi and his law firm were forced into bankruptcy by creditors. The once-respected lawyer, who currently suffers from dementia, stands accused of running his firm like a Ponzi scheme.
Many clients claim he secured them a financial settlement in a legal dispute but had excuses when it came time to pay out the money. The victims of the alleged scheme include orphans, widows and a fire burn victim.
Earlier this year, Girardi and his associates were slapped with federal criminal charges accusing them of embezzling millions from clients.
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As part of the bankruptcy, the trustee sued Jayne demanding the return of $25 million that Girardi’s firm spent to pay the bills for her company EJ Global.
Jayne has denied all allegations of wrongdoing. She said she knew nothing about her husband’s alleged improper actions.
Her attorney argued, “Ms. Girardi at all times was and is an entertainer with a 12th-grade education. Ms. Girardi was never and is not an attorney, and she trusted that GK, Mr. Girardi, and the outside accountants, given their superior knowledge and expertise, prepared proper, lawful, and legitimate tax returns.”
As RadarOnline.com previously reported, on top of the mega-lawsuit, Jayne was ordered to return a pair of diamond earrings that Girardi purchased her.
The trustee claimed the jewelry was purchased using client’s funds. Jayne argued forcing her to turn over the diamonds was improper, and that she should be awarded damages. A judge has yet to rule on the matter.
Jayne filed for divorce from Girardi in 2020 but the case can’t move forward until the bankruptcy cases are settled.