Erika Jayne has settled her $25 million bankruptcy lawsuit just days before trial was set to begin, ending a case that grew out of the bankruptcy of Tom Girardi’s former law firm, Girardi Keese. The two sides told the court during a Thursday, May 21 pretrial conference that they had reached an agreement.
“Based on multiple conversations with counsel we have agreed to a settlement,” the plaintiff’s attorney said in court, adding that the parties were asking the judge to allow them to dismiss the case without prejudice. Under the terms discussed in court, the sides have until Tuesday, May 26 to file a settlement notice and a request to dismiss the case.
The lawsuit was filed in 2021 by the trustee overseeing the bankruptcy case tied to Girardi Keese. The trustee asked Erika Girardi to repay the $25 million that was sent to her, plus interest, arguing that the law firm had paid out more than $25 million in expenses generated by her over at least 12 years. The trustee’s attorney said in court that “the law firm paid out over $25 million in expenses which were approved and generated by one person, Erika Girardi,” and urged her to return some of the money so former clients and creditors could recover losses.
Erika’s attorney denied the accusations and said she does not have legal liability in the matter. Girardi has maintained her innocence throughout the dispute and said she had no knowledge of her then-husband’s alleged misconduct. She filed for divorce from Tom Girardi in 2020 after two decades of marriage, but the divorce proceedings were paused after both were named in a fraud lawsuit.
The settlement removes a trial that was scheduled to begin only days later and closes one of the most closely watched offshoots of the Girardi bankruptcy. The case was not only about money already spent; it was about whether the trustee could claw back funds the firm had paid over many years while Tom Girardi’s broader legal troubles collapsed around him. Girardi was sentenced to seven years in prison in June 2025.
Erika Jayne has tried to frame the fallout as a lesson in standing on her own. In a 2024 interview, she said, “I sort of said Tom was the safety net, and I was able to stand out there on the highwire and I felt it was OK because somebody believed in me.” She added, “Well, when you don’t have that person any longer, you’re looking toward yourself,” and said, “You have to turn inward and you have to become your own safety net.”
For Girardi, the agreement means the bankruptcy fight over her expenses will not reach a jury. For the trustee, it leaves the next question in the court file, where the final notice and dismissal request are due by Tuesday.
