To avoid a trial, longtime Real Housewives of Beverly Hills star Erika Girardi has settled the $25 million lawsuit concerning her estranged husband’s debunked law firm.
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According to PEOPLE, Erika’s legal team confirmed that the case was “settled” during a final pretrial conference late last week. All pending motions and hearing dates were reportedly vacated. A dismissal request needs to be filed by May 26.
The lawyers did not reveal the settlement’s amount.
PEOPLE further reported that the lawsuit was initially filed in 2021, when a trustee overseeing the bankruptcy of the debunked law firm Girardi Keese accused Erika and her companies of taking more than $25 million in funds for “personal expenses.”
Although she was accused, Erika has not been criminally charged in this case.
Erika, who now goes by Eriak Jayne professionally, was previously married to Thomas Girardi for nearly 21 years. They separated in November 2020, and she filed for divorce shortly afterward.
However, one month after announcing their split, the estranged couple was hit with allegations that they embezzled funds meant for families of the 2018 Lion Air plane crash. Thomas was also accused of stealing millions from “vulnerable clients” and improperly funneling more than $20 million of the clients’ funds into EJ Global, which was set up to finalize Erika’s entertainment and singing career.
Prosecutors say he stole more than $15 million from clients between 2010 and 2020.
In August 2024, Thomas was found guilty of four counts of fraud. He was sentenced to 87 months in prison.
He will be 91 years old by the time he is released on August 1, 2031.
Erika Recently Spoke About the Lawsuit
During the recent Real Housewives of Beverly Hills reunion, host Andy Cohen asked Erika what would happen if she lost the legal battle at trial.
“You can file for bankruptcy, or you can fight it out,” she explained. “You can go to trial, you can cut a deal, you can die in the streets.”
She then added, “I have no idea.”
On the same day that the reunion was held, the trustee sold the litigation claims to a third party.
Along with discussing the lawsuit, Erika reflected on her marriage to Thomas.
“Why did he throw me out like that?” she said when asked what question she would ask her estranged husband. “If you think about it, I’m in an almost impossible situation. I’m swimming under all of these lawsuits.”
She also pointed out, “I walked on ice a lot with Tom. Looking back at it, it was always thin ice. It was constantly an interrogation. It was constantly a battle.”