Erika Girardi Avoids Trial by Settling $25 Million Lawsuit in Ongoing Legal Battle Tied to Tom Girardi's Defunct Law Firm
Erika Girardi Avoids Trial by Settling $25 Million Lawsuit in Ongoing Legal Battle Tied to Tom Girardi's Defunct Law Firm
Angelique Brenes, Sean MandellFri, May 22, 2026 at 2:29 AM UTC
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Erika Jayne in March 2026
Credit: Emma McIntyre/Getty
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Erika Girardi’s $25 million lawsuit tied to Tom Girardi's now-defunct law firm, Girardi Keese, was settled just days before a trial was set to begin
The Real Housewives of Beverly Hills star has denied allegations that she used law firm funds for personal expenses
The legal battle stemmed from the bankruptcy of the law firm, which collapsed in 2020
Erika Girardi’s long-running $25 million legal fight has come to an end before the case could make it to trial.
During a final pretrial conference on Thursday, May 21, attorneys informed Judge Anne Hwang that “the case has settled,” according to court records obtained by PEOPLE. The filing stated that all pending motions and hearing dates were vacated, and a dismissal request must be filed by May 26. The court records do not disclose the settlement amount, which remains unclear.
The lawsuit was originally filed in 2021, when the trustee handling the bankruptcy of Girardi Keese, Tom Girardi's now-defunct law firm, accused Erika and her companies of using more than $25 million in funds from the firm for personal expenses.
Erika, 54, has denied wrongdoing and has not been criminally charged.
Erika Jayne
Credit: Charles Sykes/Bravo via Getty
The case was moving toward a jury trial for months, with court records showing multiple scheduling conferences, mediation efforts and delayed trial dates before the parties ultimately reached a settlement agreement.
The latest development comes months after Erika addressed the lawsuit during part one of The Real Housewives of Beverly Hills reunion.
When host Andy Cohen asked what would happen if she lost at trial, Erika gave a candid response.
“You can file for bankruptcy, or you can fight it out in court,” she said. “You can go to trial, you can cut a deal, you can die in the streets — I have no idea.”
The same day the reunion aired, the trustee sold the litigation claims to a third party, according to PEOPLE's previous reporting.
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Erika filed for divorce from Tom in 2020. Shortly afterward, the once-prominent attorney became the center of multiple legal controversies involving allegations that he embezzled client funds.
In 2024, Tom was convicted on four counts of wire fraud after prosecutors said he stole more than $15 million from clients between 2010 and 2020. He later began serving a seven-year prison sentence after previously being diagnosed with Alzheimer’s disease and dementia, according to previous reporting.
During the RHOBH reunion, Erika also reflected on her marriage and the fallout from the legal scandals surrounding her estranged husband.
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Erika Jayne and Tom Girardi in June 2016
Credit: Steve Eichner/AP
“Why did he throw me out like that?” she said when asked what question she would most want answered by Tom. “If you think about it, I'm in an almost impossible situation. I'm swimming under all of these lawsuits.”
“I walked on ice a lot with Tom,” she added. “Looking back at it, it was always thin ice. It was constantly an interrogation. It was constantly a battle.”
Erika also alleged that she experienced emotional and financial abuse during their relationship.
“Tom one time did not talk to me for six weeks, and we lived in the same house,” she said. “As sweet as Tom could be, is as vicious as Tom could be.”
on People
Source: “AOL Entertainment”
