Law organization sues Erika Girardi, other individuals more than alleged theft of client funds

Erika Jayne attends the Elton John Aids Basis Academy Awards viewing get together at West Hollywood Park in West Hollywood, California, U.S., March 27, 2022. REUTERS/Aude Guerrucci

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  • The lawsuit seeks a lot more than $50 million in damages around the alleged misuse of settlement resources awarded to Tom Girardi’s clientele
  • Lawyer Jay Edelson explained he is “assured in our means to verify to a jury that the Girardi Keese company was performing as a criminal organization.”

(Reuters) – Plaintiffs’ legislation organization Edelson has sued lawyer Tom Girardi’s estranged spouse and former users of Girardi’s regulation company, seeking damages after Edelson lined settlement payments owed to Girardi’s former clientele in litigation in excess of the 2018 Lion Air crash.

The lawsuit was submitted late Wednesday in San Francisco federal court docket just after a decide in Illinois in April authorised a system for Edelson to shell out five families in the Lion Air circumstance at the very least $2 million.

The new lawsuit versus actuality Tv set star Erika Jayne Girardi, her company EJ International and previous Girardi Keese attorneys David Lira and Keith Griffin says the Girardis took settlement cash supposed for clientele and applied them to bankroll their lavish way of life. It phone calls Erika Girardi the “frontwoman” of the plan, “providing to the planet (such as unsuspecting customers) that Girardi Keese was productive.”

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A attorney for Girardi called the lawsuit “a further misguided try to blame Erika for actions of Tom Girardi and other individuals of which she had no understanding and in which she had no involvement.”

The lawsuit also names as defendants authorized guide George Hatcher, previous Girardi Keese main money officer Chris Kamon and the litigation funder California Legal professional Lending II. Kamon could not be achieved, and numerous other defendants or their attorneys did not right away respond to requests for remark.

William F. Savino, a law firm for California Legal professional Lending II, stated his shopper “vigorously” denies Edelson’s statements, which includes that its founder ensured the corporation bought a “1st slice” of settlement funds in the Lion Air situation.

Edelson founder Jay Edelson stated in an electronic mail that the law business feels “confident in our skill to confirm to a jury that the Girardi Keese firm was acting as a felony organization.”

“We hope this situation helps reply some larger queries: How did the company get absent with it for so a lot of many years? Why has the California bar been absent? And how a lot of other men and women had been associated?” he explained.

The criticism seeks $55 million in punitive or exemplary damages, as well as supplemental dollars damages that are redacted from the court submitting.

Underneath the deal approved in Illinois federal courtroom, the Lion Air crash victims’ people formerly represented by Tom Girardi reassigned their statements to the Edelson company. Any damages recovered via the new lawsuit will very first include attorney expenses for Wisner Legislation Organization, a Chicago business that is now representing the five families and recoup the expenditures for Edelson and its insurer. Any remaining money will be divided involving Edelson and the people.

Tom Girardi and Girardi Keese are not named in the grievance, and each are in personal bankruptcy proceedings. Tom Girardi has not responded to allegations about the misuse of the Lion Air settlement funds but his attorneys have acknowledged the funds was not distributed. Tom Girardi could not straight away be arrived at for remark.

The California Supreme Courtroom last month disbarred Girardi and purchased him to fork out around $2 million in restitution, like to the youngsters of 4 of the Lion Air plaintiffs.

The scenario is Edelson Pc vs. Lira, et al in the Northern District of California, No. 22-cv-3977.

(This story has been current with comments from lawyers symbolizing defendants in the lawsuit.)

Read through far more:

Girardi law company unethically recruited consumers in Lion Air crash plan, lawsuit alleges

Court backs regulation firm’s deal with Girardi plaintiffs, paving way for lawsuit

Legislation organization asks choose to allow $50 mln lawsuit against Erika Girardi, others

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