What is happening in Erika Jayne’s $25 million court case now?

Erika Jayne settles $25M lawsuit tied to Girardi Keese bankruptcy just before trial in California court case

Erika Jayne has reached a settlement in a long-running $25 million civil lawsuit tied to the bankruptcy proceedings of the law firm Girardi Keese, bringing the case to a close just days before it was set to go to trial.

According to court records from the United States District Court for the Central District of California, all pending motions and scheduled hearings in the case have been vacated following the agreement. The terms of the settlement were not publicly disclosed.

The lawsuit was originally filed in 2021 by a bankruptcy trustee overseeing the collapse of Girardi Keese, the former law firm of disgraced attorney and Jayne’s estranged husband Tom Girardi. The trustee alleged that Jayne received more than $25 million in funds that were connected to the firm and used them for personal expenses. Jayne has consistently denied any wrongdoing and has not faced criminal charges in relation to the claims.

The civil case is part of a wider legal fallout surrounding Girardi Keese, which entered involuntary bankruptcy in 2020 amid allegations of widespread financial misconduct. Girardi was later convicted of wire fraud and sentenced to more than seven years in prison after being found guilty of stealing millions from clients over a period of years.

During a recent appearance on The Real Housewives of Beverly Hills Season 15 reunion, Jayne addressed the uncertainty surrounding the legal proceedings, acknowledging that the outcome of such cases can range from settlement to trial.

Girardi, once a high-profile attorney known for major cases including the Pacific Gas & Electric groundwater litigation that inspired Erin Brockovich, was later accused by federal prosecutors of operating his law firm in a fraudulent manner, diverting millions in client funds.

With the settlement now reached, the $25 million dispute involving Jayne has been officially removed from the court calendar, marking a significant development in one of the most closely followed legal battles connected to the Girardi scandal.