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Erika Jayne resolved the bankruptcy trustee’s $25 million lawsuit over alleged Girardi Keese-funded personal expenses, according to TMZ. The litigation had been pending for roughly five years and centered on claims that Girardi Keese money was used for Jayne’s benefit, including expenses tied to EJ Global, as the trustee pursued estate recoveries from parties connected to Tom Girardi and the collapsed law firm.
The settlement matters because it removes one of the case’s highest-profile recovery disputes shortly before trial pressure was expected to peak. For creditors and other estate stakeholders, the next question is not liability optics but settlement economics: whether the compromise produces a meaningful recovery, avoids litigation cost, or materially changes the trustee’s remaining collection path.
The Chapter 7 Trustee’s retained professionals seek aggregate interim compensation and expense reimbursement of $340,741.14 for work performed during 2025, including $184,573.54 for Raines Feldman Littrell, $93,177.60 for Development Specialists, $38,003.60 for Gleichenhaus, Marchese & Weishaar, and $24,986.40 for Menchaca & Company, according to the notice of hearing on the interim applications. Menchaca’s fourth interim fee application reports that the estate held approximately $31 million in cash and that its work included tax compliance, wage-claim payroll filings, and an expert report supporting the Trustee’s litigation against Erika Girardi and related parties.
The applications put a defined $340,741 estate-administration outflow before the court while the Trustee continues recovery litigation and claims administration. Objections were due 14 days before the February 24, 2026 hearing.
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