Erika Jayne settled her $25 million bankruptcy lawsuit just days before it was set to go to trial.
The attorney of the plaintiff in the lawsuit shared in a court transcript obtained by Us Weekly, “Based on multiple conversations with counsel we have agreed to a settlement. And we’re asking the court to allow us to dismiss without prejudice.”
The settlement amount was not disclosed.
The “Real Housewives of Beverly Hills” alum, 54, was sued back in August 2021 by the trustee handling the bankruptcy case of her estranged husband Tom Girardi’s former law firm, Girardi Keese.
The lawyers for the trustee found that Jayne’s company spent more than $25,000,000 on her American Express bill, assistants and a glam squad, according to a legal demand letter sent to her lawyer exclusively obtained by Page Six in August 2021.
The letter alleged that money was transferred from Girardi’s law firm into Jayne’s company, EJ Global LLC, and noted that she is the sole owner of the company.
The trustee in the bankruptcy case wanted her to pay the firm back — alleging Jayne knew that Girardi’s firm was paying for her expenses for at least 12 years — per court documents obtained by Page Six.
The trustee argued that just because Jayne claimed she didn’t know about her husband’s financial issues, “it would be a miscarriage of justice if [she] was allowed to simply walk completely free of owing over $25,000,000 to the Estate.”
“Erika signed all of her tax returns, numerous credit card slips, and was well aware of the money she spent on the Debtor’s credit cards and the Debtor’s payment of her personal expenses,” the trustee alleged. “Her feigned willful blindness and ostrich approach to these expenditures will do absolutely nothing to limit her liability.”
Jayne’s lawyer told Page Six at the time that the reality star would defend the case, and also seek sanctions “and all appropriate remedies for the claims brought in bad faith and without any legal merit.”
“Unfortunately, the amended complaint is another example of the trustee and her counsel jumping to conclusions without a full investigation, and bullying and blaming Erika for actions taken by Girardi Keese for which Erika does not have legal liability,” the statement read.
Girardi was sentenced to seven years and three months behind bars for his fraud conviction on last June. He began serving his seven-year sentence a month later.
Jayne told Andy Cohen on “Watch What Happens Live” in December that she has not visited Girardi, 87, in prison.
“It’s just too much,” she explained. “That’s enough. He’s done. You know, it is what it is.”
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