The Erika Jayne lawsuit ended in a last-minute settlement on May 21, 2026, when attorneys told a Los Angeles federal judge the $25 million bankruptcy case against the singer and reality television personality had been resolved days before trial was set to begin.1People. Erika Girardi Settles $25 Million Lawsuit Before Trial The settlement amount was not disclosed.2Bloomberg Tax. Erika Jayne Settles $25 Million Transfer Suit in Bankruptcy Case Girardi denied wrongdoing throughout the five-year case and was never criminally charged.3Los Angeles Times. Housewives Star Erika Girardi Settles $25 Million Civil Lawsuit
What the Lawsuit Claimed
Bankruptcy trustee Elissa Miller sued Girardi and her solely owned entertainment company, EJ Global LLC, in 2021, alleging that Tom Girardi’s now-collapsed law firm Girardi Keese had improperly transferred at least $25,592,261 for Erika’s personal benefit.4Images.law.com. Girardi Keese Finances Trustee Amended Complaint Against Erika The trustee split the transfers into two buckets: roughly $14 million charged to an American Express card in Girardi’s name, and about $11 million paid directly to shopping vendors she selected.5American Bankruptcy Institute. Tom Girardi’s Bankruptcy Trustee Sues Erika Jayne for $25 Million
According to the complaint, those funds paid for what filings called Girardi’s “lavish lifestyle”: a personal glam squad, talent and image professionals, travel, clothing, jewelry, and expenses tied to her music career.4Images.law.com. Girardi Keese Finances Trustee Amended Complaint Against Erika Pretrial filings itemized specific payees, including more than $1.5 million to a talent agency.6Page Six. Here’s How Erika Jayne’s Company Allegedly Spent $25M
The pivotal legal question was knowledge. The trustee argued Girardi could not plausibly claim ignorance because she signed her own tax returns and credit card slips and was “well aware of the money she spent.” Miller called Girardi’s stated lack of knowledge a “feigned willful blindness” and said it would be “a miscarriage of justice” to let her “simply walk completely free.”5American Bankruptcy Institute. Tom Girardi’s Bankruptcy Trustee Sues Erika Jayne for $25 Million
How Erika Girardi Defended the Case
Girardi’s attorney, Evan Borges of Greenberg Gross, argued that no money was ever transferred directly to Girardi or her bank accounts. Vendors and creditors of EJ Global sent bills straight to Girardi Keese, which paid them and coded the payments as EJ Global expenses. Borges called the trustee’s claims “bullying and blaming Erika for actions taken by Girardi Keese for which Erika does not have legal liability.”5American Bankruptcy Institute. Tom Girardi’s Bankruptcy Trustee Sues Erika Jayne for $25 Million In depositions, Girardi said she had been unaware of her husband’s crimes and that the firm had simply “paid my Amex credit card bill every month.”3Los Angeles Times. Housewives Star Erika Girardi Settles $25 Million Civil Lawsuit
The defense drew pushback from the bench. In August 2023, U.S. Bankruptcy Judge Barry Russell rebuked Borges over filings that attacked the trustee, telling Girardi’s side they had “no evidence” to support those attacks.7The Recorder. Judge Blasts Erika Girardi’s Latest Attacks on Bankruptcy Trustee
The Sale That Reshaped the Case
On April 23, 2026, a court approved the sale of the litigation rights against Girardi to a third-party company called LHA Land LLC for $2 million. The deal handed the bankruptcy estate guaranteed money and shifted the risk of trial to the new owner, which continued pursuing the full $25 million claim. Attorney Ronald Richards said the $2 million could help “reimburse the victims who lost their hard-earned settlements.”8AOL. $25 Million Erika Jayne Lawsuit
The sale aired publicly alongside the Season 15 reunion of The Real Housewives of Beverly Hills, where host Andy Cohen asked Girardi what she would do if she lost. She answered: “You can file for bankruptcy, or you can fight it out in court. You can go to trial, you can cut a deal, you can die in the streets — I have no idea.”9People. Erika Jayne $25 Million Civil Fraud Trial RHOBH Reunion
The Settlement
Less than a month after the litigation was sold, attorneys notified U.S. District Judge Anne Hwang during a final pretrial conference on May 21, 2026, that the case had settled. Trial had been scheduled to start on May 27. The court vacated all pending motions and hearing dates and ordered a dismissal request to be filed by May 26.1People. Erika Girardi Settles $25 Million Lawsuit Before Trial Neither side disclosed how much was paid.2Bloomberg Tax. Erika Jayne Settles $25 Million Transfer Suit in Bankruptcy Case
The Diamond Earrings Side Fight
A separate dispute drew attention throughout the case. Tom Girardi had bought Erika a pair of diamond earrings using a $750,000 check drawn from a law firm trust account, and the bankruptcy trustee argued the earrings belonged to the estate. A court initially ordered them turned over.10Bloomberg Law. Girardi Bankruptcies Lay Bare Life of Excess at Others’ Expense The earrings were auctioned in December 2022 for $312,500 to an anonymous remote bidder.11Law360. Erika Girardi’s Diamond Earrings Sold at Auction for $312K
Girardi appealed, and in July 2023 a California district court ruled in her favor, finding the trustee had not proven the earrings were property of the estate. By then the earrings had already been sold, and the matter went back to the bankruptcy court to sort out ownership of the proceeds.12Yahoo Entertainment. Erika Jayne Wins Appeal Over Earrings
Where Erika Girardi Stands Criminally
Erika Girardi was never charged with a crime in connection with the Girardi Keese collapse. The criminal cases fell on others. Her ex-husband Tom Girardi was convicted of four counts of wire fraud in August 2024 and sentenced on June 3, 2025, to seven years and three months in federal prison, along with $2.3 million in restitution and a $35,000 fine.13NBC News. Tom Girardi Sentenced to 7 Years in Prison The firm’s former accounting chief, Christopher Kamon, pleaded guilty to wire fraud and was sentenced in April 2025 to just over 10 years.14U.S. Department of Justice. Former Accounting Chief of Now-Defunct Girardi Keese Law Firm Sentenced to Over 10 Years The civil bankruptcy action against Erika Girardi was the vehicle through which the trustee sought to recover money the firm had spent on her behalf, and that vehicle has now been closed by settlement.