Erika Jayne Settles $25 Million Girardi Keese Lawsuit

Reality television star Erika Jayne reached a confidential settlement in the $25 million civil lawsuit tied to the collapse of the Girardi Keese law firm days before the case was scheduled to go to trial.

The settlement was disclosed during a pretrial conference before Los Angeles bankruptcy Judge Anne Hwang on Friday, prompting the court to cancel remaining hearings and motions ahead of the May 26 trial date. The terms of the agreement were not publicly disclosed.

The case became one of the most closely watched civil lawsuits linked to the downfall of prominent attorney Tom Girardi and the Girardi Keese bankruptcy. Jayne, whose legal name is Erika Girardi and who stars on “The Real Housewives of Beverly Hills,” had denied wrongdoing throughout the litigation.

Trustees Alleged Millions Were Transferred

The lawsuit was originally filed by the bankruptcy trustee overseeing the Keese estate. Court filings alleged that more than $25 million in law firm funds was transferred over several years to Jayne and businesses associated with her entertainment company.

Trustees argued the transfers amounted to fraudulent conveyances, a legal claim alleging money was improperly moved away from creditors owed funds by the bankrupt firm.

Jayne repeatedly denied knowingly participating in any fraud. Her attorneys previously argued she was unaware of the firm’s alleged financial misconduct and should not be held personally liable for Girardi Keese’s debts.

“The law firm paid out over $25 million in expenses which were approved and generated by one person, Erika Girardi,” the trustee’s attorney told Us Weekly in a statement at the time. “We are hopeful that Ms. Girardi comes down the mountain from a place of privilege and obscene wealth and returns some of these expenses so the former clients and creditors of this law firm can mitigate the horrific and unfair losses perpetrated by her husband and others.”

Claims Were Sold Before Trial

Earlier this year, the bankruptcy trustee moved to sell the remaining claims against Jayne to private entity LHA Land LLC for $2 million. The bankruptcy court approved the transaction, allowing the company to take over the litigation and pursue recovery directly.

The trustee argued the sale guaranteed immediate funds for creditors instead of risking an uncertain and potentially expensive trial outcome.

Legal trade publication Daily Journal reported that the trustee viewed the transaction as a way to secure a guaranteed recovery for Girardi Keese creditors while limiting the financial risks tied to continued litigation.

Under the agreement approved by the court, any additional money recovered through the confidential settlement would go to LHA Land LLC rather than directly to former Girardi Keese clients.

Girardi Fraud Case Triggered Criminal Fallout

The civil lawsuit unfolded alongside broader criminal cases involving Girardi Keese and its former leadership.

Last year, Girardi was sentenced to federal prison after being convicted of wire fraud related to the theft of millions of dollars from clients. Federal prosecutors alleged the firm spent years using client settlement money to cover operational expenses and fund Girardi’s lifestyle.

Former Girardi Keese accounting head Christopher Kamon was also sentenced in connection with the scheme, while former firm attorney Keith Griffin pleaded guilty to contempt-related charges tied to unpaid client settlements.