The now-defunct Girardi Keese law firm operated a continuing criminal enterprise that stole more than $100 million from the its clients, co-counsel, vendors, “and many others unfortunate enough to do business with the firm,” the Edelson PC law firm said in a federal lawsuit.
Girardi Keese allegedly siphoned off settlement payments to family members of plane-crash victims, women who developed breast cancer after taking hormone replacement therapy, and others who hired the plaintiffs’ firm, according to the lawsuit, filed late Wednesday. Instead of turning over awards to clients, millions of dollars went to fund lavish lifestyles of Thomas Girardi and his “Real Housewives of Beverly Hills” wife, Erika Girardi, the filing said.
“When the curtain was finally pulled back, it became clear that Girardi Keese operated in a manner similar to a Ponzi scheme, but much worse,” according to the lawsuit, filed in the US District Court for the Northern District of California.
Edelson served as Girardi Keese’s local co-counsel for clients in the litigation over the 2018 crash of Lion Air flight JT 610. In December 2019, Edelson sued Girardi, Girardi Keese, and others to recoup its share of attorneys’ fees and to track down Boeing Co. settlement funds Girardi Keese still owes to several clients. Girardi creditors filed an involuntary Chapter 7 bankruptcy petition against the firm.
Girardi Keese collapsed within days of Edelson filing a contempt petition for money stolen from…
