Litigation Funder Sues Thomas Girardi, Firm Claiming $15M+ in Unpaid Loans
Girardi, better known to reality TV fans as the husband of "Real Housewives of Beverly Hills" star Erika Jayne, was hit with a lawsuit by Mill Valley-based Law Finance Group on Jan. 17.
January 22, 2019 at 04:22 PM
4 minute read
Plainitffs lawyer Thomas Girardi has been hit with a lawsuit from a litigation funder claiming that he and his firm have failed to repay more than $15 million in loans.
Mill Valley-based Law Finance Group LLC sued Girardi and his firm, Girardi Keese, on Jan. 17 in Los Angeles Superior Court claiming the defendants refused to hand over recovered fees from cases that the parties allegedly agreed they'd use to repay the loans.
Girardi, the husband of “Real Housewives of Beverly Hills” star Erika Jayne, didn't immediately respond to an email seeking comment.
Read the complaint:
According to the lawsuit, Girardi and the firm have so far failed to make any payments on the debt totaling $15,151,989, but Girardi has pointed to the firm's recent successes to assure the funder it will “eventually” be repaid.
“As a prominent civil litigator, Mr. Girardi of all people should understand the consequences of breaching a loan and security agreement and a personal guaranty,” wrote the funder's lawyers at Eisner APC. “Nevertheless, Mr. Girardi and his law firm, Girardi Keese, have admitted to breaching their obligations under their written agreements with the plaintiff—written agreements to borrow funds that, on information and belief, were used to maintain Mr. Girardi's lavish lifestyle and to keep his prominent law firm financially afloat, causing significant harm to the plaintiff.”
According to the lawsuit, Law Finance Group had discovered by April 2016 that Girardi breached the loan agreement by granting at least four security interests to third parties. The suit claims that as part of a forbearance agreement, Girardi agreed to pay $1 million by Oct. 31, 2018, and $5 million by no later than Jan. 1, but no payments have been made.
Leslie Corwin of Eisner APC, the funder's lawyer, said in a phone interview Tuesday that his client has initiated a mediation outlined in the parties' loan agreement, but filed suit in order to pursue Girardi's assets.
“We just want to get paid,” Corwin said. “We're about to go in and attach assets, including his house in Pasadena.”
Girardi's finances have been in the litigation spotlight since his wife joined the cast of the Bravo reality TV show “The Real Housewives of Beverly Hills” in 2015. He was ordered to turn over documents in 2016 detailing his personal net worth and firm finances in a lawsuit alleging he misappropriated more than $12.5 million from a settlement over the hormone replacement therapy drug Prempro.
|
Read more: Plaintiffs Lawyer Tom Girardi's Finances Pried Open in Misappropriation Suit
Also, a Woodland Hills lawyer unsuccessfully pursued claims against Girardi and the firm, claiming they charged excessive costs to class members involving $130 million in settlement funds for former Lockheed Martin employees in toxic tort lawsuits.
Among the cases whose proceeds are listed as collateral in the loan agreement attached to Law Finance Group's complaint are cases Girardi has handled that yielded a $2.4 billion settlement with Takeda Pharmaceuticals over claims the company failed to warn of bladder cancer risks associated with the drug Actos and In Re: National Football League Players' Concussion Injury Litigation, where federal judge in Pennsylvania previously has scrutinized underlying litigation funding agreements.
Related stories:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllA Look at Big Law Partner Donors to Trump and Harris in California
Wilson Sonsini Hit With Disability Discrimination Suit by Ex-Assistant
Big Law Lawyers Fan Out for Election Day Volunteering in Call Centers and Litigation
7 minute readBaker McKenzie, Ex-Client Embroiled In Litigation Over Retainer Agreement Breach
Trending Stories
- 1Infant Formula Judge Sanctions Kirkland's Jim Hurst: 'Overtly Crossed the Lines'
- 2Election 2024: Nationwide Judicial Races and Ballot Measures to Watch
- 3Guarantees Are Back, Whether Law Firms Want to Talk About Them or Not
- 4How I Made Practice Group Chair: 'If You Love What You Do and Put the Time and Effort Into It, You Will Excel,' Says Lisa Saul of Forde & O'Meara
- 5Abbott, Mead Johnson Win Defense Verdict Over Preemie Infant Formula
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250