Erika Jayne’s years-long legal battle appears to have taken a dramatic turn just days before she was expected to head to trial. “The Real Housewives of Beverly Hills” star reportedly settled her massive $25 million lawsuit only days before proceedings were scheduled to begin on May 26. The case, which has loomed over Jayne for years amid fallout from estranged husband Tom Girardi’s legal scandal, accused the reality star and her businesses of using millions from Girardi’s now-defunct law firm for personal expenses, allegations she has repeatedly denied.
Erika Jayne’s $25 Million Lawsuit Has Reportedly Been Settled
According to court records obtained by the Daily Mail, attorneys informed Judge Anne Hwang during a final pretrial conference on Thursday that “the case has settled.” While the court filing reportedly confirmed the legal matter had been resolved, details surrounding the agreement remain under wraps. The records do not disclose the terms of the settlement or whether any money was paid as part of the deal.
The lawsuit had reportedly been delayed multiple times over the years through mediation efforts and scheduling setbacks before finally receiving a trial date. Representatives for Jayne have not publicly commented on the reported settlement.
Jayne Was Accused Of Using Millions From Tom Girardi’s Law Firm
The lawsuit was originally filed in 2021 and accused Jayne and her companies of using more than $25 million allegedly tied to Girardi’s now-defunct law firm, Girardi Keese. Jayne has consistently denied wrongdoing and previously maintained she had no knowledge of her estranged husband’s financial troubles.
The legal drama even became a topic of conversation during “The Real Housewives of Beverly Hills” reunion, when host Andy Cohen asked her about the mounting pressure surrounding the case. “You can file for bankruptcy, or you can fight it out in court,” Jayne said. “You can go to trial, you can cut a deal, you can die in the streets. I have no idea.”
Last month, a Los Angeles bankruptcy court reportedly approved the sale of the potentially $25 million legal claim against Jayne for $2 million. According to legal documents reviewed by the Daily Mail, the rights were sold to LHA Land LLC.
Erika Jayne Previously Claimed Tom Girardi’s ‘Incompetence’ Delayed Divorce
The legal update comes years after Jayne first filed for divorce from Girardi in November 2020. The split quickly became entangled in Girardi’s mounting legal troubles, including allegations of embezzlement tied to settlement funds intended for vulnerable clients.
In December, Jayne claimed the divorce had not yet been finalized because of Girardi’s condition. “It’s very difficult to get someone who’s incompetent to divorce. I have to ask the conservator,” she said. “It’s just not that easy. You guys, just stop with all that. Chill on that.”
When asked whether she had considered seeing Girardi, Jayne made her feelings clear. “I have … no. It’s just too much,” she said. “That’s enough. He’s done. It is what it is.”
Tom Girardi Was Sentenced To Federal Prison
Girardi’s legal downfall has remained one of the biggest scandals surrounding Jayne in recent years. Nearly a year ago, the former high-profile attorney was sentenced to 87 months in federal prison for embezzling tens of millions of dollars in settlement money owed to clients, including victims awaiting compensation for severe injuries.
United States District Judge Josephine L. Staton also ordered Girardi to pay a $35,000 fine and $2,310,247 in restitution. United States Attorney Bill Essayli sharply criticized Girardi following the sentencing. “This self-proclaimed ‘champion of justice’ was nothing more than a thief and a liar who conned his vulnerable clients out of the millions of dollars,” he said. “My office will vigorously prosecute corrupt lawyers and those who assist them in criminal activities.”
Erika Jayne Previously Said She Felt ‘Vindicated’
Despite years of scrutiny, Jayne has maintained she was not involved in any alleged wrongdoing. In 2022, Judge Richard Fruin found there was no evidence Jayne participated in “any wrongdoing.” After the ruling, the reality star spoke to the Daily Mail about the emotional moment. “It’s a good day.”
When asked if she felt vindicated, Jayne responded, “Yes, I do. And when quizzed on what she would say to her critics, she added: ‘All I asked for was some time and some understanding. And today is a good day.’”