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Erika Jayne has settled the $25 million lawsuit filed against her just days before she was set to go to trial.
Years after the trustee presiding over the bankruptcy of her estranged husband Thomas Girardi‘s defunct law firm, Girardi Keese, filed the case, alleging that Erika used millions of the firm’s funding to support herself and her business, the 54-year-old Real Housewives of Beverly Hills star was able to evade further proceedings.
According to court documents obtained by PEOPLE on May 21, Judge Anne Hwang was informed that “the case has settled” at a pretrial conference on Thursday. However, while it was confirmed that all pending motions and hearings have been canceled, the settlement amount was not revealed, and a request to have the case dismissed must be filed by May 26.
As RHOBH fans may have seen, Erika, whose trial date was rescheduled numerous times before she settled, opened up about the potential outcome of the trustee’s case against her at the season 15 reunion.
“You can file for bankruptcy, or you can fight it out in court,” she said. “You can go to trial, you can cut a deal, you can die in the streets — I have no idea.”
The litigation claims were also sold to a third party ahead of the trial as Thomas, 86, continued serving a seven-year prison term for his own role in defrauding former clients of his law firm of more than $15 million.
Meanwhile, in another legal update pertaining to Erika, attorney Ronald Richards shared on Instagram on May 21 that her rumored benefactor, James “Jim” Wilkes, had allegedly defaulted on a foreclosure action on his $5 million home in Tampa and was being sued “for $1,669,500.00 for defaulting on a business loan.”
It was also alleged that Jim was facing a subpoena on his Wells Fargo bank accounts in regard to claims of improper use of $4.4 million in COVID relief funds.
Ronald then shared that the lawsuit filed against him by designer Marco Morante was still in “full swing” while the same designer’s case against Erika seemed to be “going away.”
“Marco is taking hearings to amend his complaint off [the] calendar,” the attorney explained.