Reality television star Erika Girardi settled a $25-million bankruptcy lawsuit in Los Angeles federal court on Thursday, May 21, just days before a scheduled trial.
The lawsuit was filed in 2021 by a trustee overseeing the bankruptcy of her estranged husband Tom Girardi's defunct law firm, Girardi Keese.
>>> Star Amusements Signs Lease to Revive Historic Kursaal Building in Southend
Plaintiffs alleged that the "Real Housewives of Beverly Hills" star knew the firm paid her personal and professional expenses for over 12 years.
Court records showed that Girardi, who performs under the stage name Erika Jayne, allegedly used embezzled funds from her husband's massive fraudulent scheme to finance her music career.
During a pretrial conference, the parties announced the resolution, and the court granted them until Tuesday, May 26, to file a formal dismissal request.
"Based on multiple conversations with counsel we have agreed to a settlement," said plaintiff's attorney Larry W. Gabriel.
The attorney noted that the plaintiffs requested a dismissal without prejudice to conclude the litigation.
A pretrial filing claimed that Erika Girardi's associated company benefited directly from the firm's fraudulent activities.
"The law firm paid out over $25 million in expenses which were approved and generated by one person, Erika Girardi," the trustee's attorney previously told Us Weekly.
The trustee had hoped that Girardi would return the funds to assist former clients and creditors who suffered losses due to the firm's misconduct.
In a deposition, Erika Girardi said, "I did not know how much I spent per month or per year."
>>> Emergency Crews Search Southend Pier After Reports of Men Jumping
She explained that the law firm settled her credit card bills directly, with records showing Girardi Keese paid at least $14 million to her American Express account between 2008 and 2020.
"Girardi Keese paid my Amex credit card bill every month," Girardi said.
The defense maintained that Girardi lacked legal liability, as she filed for divorce from Tom Girardi in 2020 and claimed total innocence regarding the firm's operations.
"I sort of said Tom was the safety net, and I was able to stand out there on the highwire and I felt it was OK because somebody believed in me," Erika Girardi told Us Weekly in 2024.
She reflected on her journey after the legal fallout and the pause in her divorce proceedings due to the broader fraud prosecution against her husband.
"Well, when you don't have that person any longer, you're looking toward yourself.
You have to look inward and you have to be your own safety net and your biggest cheerleader," Girardi stated.
Tom Girardi was convicted of wire fraud in 2024 and received a seven-year federal prison sentence in June 2025 for stealing tens of millions from personal-injury clients.
"You have to turn inward and you have to become your own safety net. … You have to really want to move on.
>>> Three Kent Men Jailed for Sexual Abuse and £2.5 Million Fraud
You have to really want and stick it out. You got to stick it out because it's uncomfortable," Girardi added.
