Erika Jayne settled the $25 million bankruptcy lawsuit against her in May 2026, just days before a jury trial was set to begin in Los Angeles federal court. The settlement amount was not disclosed, and the agreement carried no admission of wrongdoing by the reality star.1Bloomberg Law. Erika Jayne Settles $25 Million Transfer Suit in Bankruptcy Case It closed out the largest civil claim tied to the collapse of her estranged husband Tom Girardi’s law firm, Girardi Keese.
How the Settlement Was Reached
On May 21, 2026, lawyers for both sides told U.S. District Judge Anne Hwang at a final pretrial conference that they had a deal. The court vacated all pending motions and hearing dates and directed the parties to file a dismissal request by May 26.2People. Erika Girardi Settles $25 Million Lawsuit Before Trial
There is one procedural detail worth understanding. In April 2026, the bankruptcy court approved the sale of the estate’s claims against Jayne and her companies to an entity called LHA Land LLC.3Angeion Group. Girardi Keese Bankruptcy Dockets By the time the settlement was signed, Jayne was no longer negotiating with the bankruptcy trustee directly but with LHA Land as the purchaser of the claims. The dismissal filing was expected to be a stipulation for dismissal without prejudice, with a mutual waiver of costs.4AOL. RHOBH Star Erika Jayne Settles
What the Trustee Alleged
The lawsuit was filed in August 2021 by Elissa Miller, the Chapter 7 trustee for Girardi Keese, in the U.S. District Court for the Central District of California. Captioned Miller v. Girardi et al. (No. 2:21-ap-01155), it alleged that more than $25 million in law firm funds had been funneled to Jayne and her company, EJ Global LLC, between 2008 and 2020.5Bloomberg Law. Erika Jayne Settles $25 Million Transfer Suit in Bankruptcy Case
According to the trustee, the money paid for Jayne’s American Express bills, personal assistants, and the “glam squad” that maintained her public image. The trustee argued Jayne had been aware of the arrangement for at least 12 years, pointing to tax returns she signed and numerous credit card receipts. The trustee described her claimed ignorance of Girardi’s finances as “feigned willful blindness” and an “ostrich approach” to where the money came from.6Page Six. RHOBH Star Erika Jayne’s $25M Legal Nightmare Takes Shocking Turn Days Before Trial
The central question was whether Jayne could be held personally liable for receiving money that came from Girardi’s embezzlement of client funds. To win, the trustee had to prove she had “actual knowledge” the money was stolen rather than legitimate income. Jayne maintained throughout the case that she had no idea her husband was defrauding his clients and was never involved in running the firm.7Los Angeles Times. Housewives Star Erika Girardi Settles $25 Million Civil Lawsuit
How the Case Got Here
Jayne filed for divorce from Tom Girardi on November 3, 2020. Weeks later, the Chicago firm Edelson PC filed a lawsuit calling the divorce a “sham” designed to protect assets and alleging Girardi had misappropriated settlement funds meant for families of victims of the 2018 Lion Air Flight 610 crash.8Vanity Fair. A Brief Overview of Erika Jayne’s Legal Woes
In December 2020, a federal judge froze Girardi’s assets after he could not account for $2 million in Lion Air funds. By January 2021, Girardi and his firm were pushed into involuntary Chapter 7 bankruptcy. His brother petitioned to become his conservator, and Girardi was later diagnosed with late-onset Alzheimer’s. The California State Bar rendered his license inactive in March 2021 and disbarred him in July 2022.9Business Insider. Real Housewives Erika Jayne Tom Girardi Divorce Legal Trouble Timeline
Why a Deal Made Sense When It Did
A separate case against Jayne offered a preview of how the “actual knowledge” standard could play out in front of a court. Attorney Robert Finn had sued her for aiding and abetting Girardi’s breach of fiduciary duty over $3.94 million from a toxic emissions settlement. A Los Angeles Superior Court judge granted Jayne summary judgment in August 2022, finding no evidence she knew about the specific client relationship. California’s Second District Court of Appeal affirmed in January 2025, writing that Jayne “had no awareness of even the existence of a relationship between Finn, Girardi, and G&K” regarding the cases at issue.10Metropolitan News-Enterprise. Erika Jayne Prevails in Aiding and Abetting Lawsuit
That ruling turned on the same knowledge question that hung over the trustee’s $25 million case going into trial.
What the Settlement Does Not Resolve
The settlement closes Jayne’s exposure on the trustee’s claim. It does not close the criminal chapter for Tom Girardi. A federal jury in Los Angeles found him guilty on four counts of wire fraud in August 2024, and Judge Josephine Staton sentenced him in June 2025 to 87 months in federal prison and $2.3 million in restitution. Evidence at trial showed more than $25 million had been diverted to EJ Global to support Jayne’s entertainment career, along with millions more spent on private jets, luxury cars, and jewelry.11U.S. Department of Justice. Disbarred Personal Injury Lawyer Tom Girardi Found Guilty of Defrauding Clients12Courthouse News Service. Tom Girardi Sentenced to More Than 7 Years in Prison for Defrauding Clients
The bankruptcy itself also continues. As of November 2023, the Girardi Keese estate still faced an estimated $332 million in unsecured creditor claims.13The Recorder. Bankruptcy Trustee Settles With Last Girardi Keese Lender; $332M in Claims Remain Trustee Elissa Miller has kept filing individual recovery actions, including an October 2025 suit seeking to claw back $3.16 million tied to a personal injury settlement Girardi allegedly pocketed.14Bloomberg Law. Trustees for Girardi Litigation Funder Sue Over Settlement Cash The Lion Air families did eventually receive their money, but through another law firm’s insurer rather than from recovered Girardi Keese assets.15U.S. Department of Justice. California Attorney Guilty Federal Contempt Charge Failing Ensure Distribution