Erika Girardi has settled a $25-million bankruptcy lawsuit in Los Angeles federal court, bringing a quiet end to a long-running case tied to the collapse of her ex-husband Tom Girardi’s once-powerful law firm. The suit centered on claims that she benefited from money allegedly taken from clients of Girardi Keese and used to support her music career and personal spending.
The case had drawn wide attention because of the scale of the allegations and the public profile of the “Real Housewives of Beverly Hills” star. Court filings said Erika Girardi, who performs as Erika Jayne, received benefits from what plaintiffs described as Tom Girardi’s “massive fraudulent scheme.”
What the lawsuit alleged
The bankruptcy suit argued that Erika Girardi should have known she was spending money tied to embezzled funds. Plaintiffs said the law firm covered major expenses related to her career, including recording, merchandise, tours, and designer-style outfits.
According to a filing from attorney Larry W. Gabriel, Erika and a company connected to her “received the benefit of [Tom] Girardi’s massive fraudulent scheme.” The case focused on whether the funds used to pay for her lifestyle and professional image came from Girardi Keese while the firm was allegedly being drained by fraud.
How the spending was described in court
Court records showed that Erika Girardi spent far more than she earned as a musician. She built her pop persona in the 2010s with club tracks known for their bold lyrics, luxury references, and theatrical style.
In depositions, she said she did not know where the money for her career expenses came from. “I did not know how much I spent per month or per year,” she said, adding that “Girardi Keese paid my Amex credit card bill every month.”
The credit card payments at the center of the case
Monday’s filings stated that Girardi Keese paid at least $14 million in charges to her American Express account between 2008 and 2020. Those payments became a key part of the plaintiffs’ effort to show that the law firm funded her spending over many years.
The filings also said that concerns about her spending emerged as her pop career reached its peak. In 2016, Tom Girardi reportedly complained that she was charging too much on the account, and she later checked her balance for the first time after repeated warnings.
Questions over disputed charges
After that, Erika Girardi said she became suspicious of charges made by a Hollywood costumer on her card. Court records say she raised the issue with one of Girardi Keese’s clients, who was an agent in the Secret Service.
Based on advice from that agent’s colleagues, she disputed the American Express charges and later received a refund of more than half a million dollars into her personal account. The original payments for those charges had come from the law firm, according to the filings.
Tom Girardi’s conviction adds context to the settlement
The settlement comes against the backdrop of Tom Girardi’s criminal conviction and prison sentence. He is serving seven years in federal prison after being found guilty of wire fraud in 2024 for stealing from personal-injury clients.
He was also found to have stolen tens of millions from his law firm, making the bankruptcy case around Erika Girardi part of a much broader collapse tied to one of Los Angeles’ most notorious legal scandals. Erika Girardi’s attorney did not immediately respond to requests for comment Friday, and the settlement leaves the public record focused on how the case unfolded around spending, reimbursements, and claims of ignorance.
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