Episode 4 - Settlement Embezzlement

In this Episode (Part 1 of our Settlement Embezzlement series) we will explain what contingency fees are, and how they are supposed to work, and outline the claims against Tom Girardi - with many digressions about Erika Jayne.


No matter what your personal financial situation is, no matter what kind of pressures you are under, if you touch client money, you are going to be disbarred and quite possibly charged criminally,” said Durkin, calling it “ethics 101.
— U.S. District Judge Thomas M. Durkin

The haters are always going to say, ‘All you do is spend your husband’s money.’ First of all, it’s our money. Know how I know? Because the IRS tells us that it is. My name is on that tax return too.
— from Erika Jayne's memoir, Pretty Mess

Client Lawsuits Listed in the LAW360 Article

2001
Robert Anzures et al. v. Girardi Keese et al.

About 80 former Lockheed employees allege Girardi misappropriated funds from a settlement for on-the-job exposure to chemicals. The case settled for an undisclosed amount in 2005.

The case is Robert Anzures et al. v. Girardi Keese et al., case number VC035337, in the Superior Court for the State of California, County of Los Angeles.

2008
Luis Gutierrez v. Thomas V. Girardi et al.

Additional Lockheed employees allege Girardi misappropriated funds from a settlement for on-the-job exposure to chemicals. A California judge dismissed the case as time-barred, which was upheld on appeal.

The case is Luis Gutierrez v. Thomas V. Girardi et al., case number BC400560, in the Superior Court for the State of California, County of Los Angeles.

2011
Prakashpalan et al. v. Engstrom Lipscomb & Lack

Victims of the 1994 Northridge earthquake allege Girardi Keese and other firms misappropriated funds from an insurance coverage settlement. The case was dismissed as time-barred.

The case is Prakashpalan et al. v. Engstrom Lipscomb & Lack, case number SC112882, in the Superior Court of the State of California, County of Los Angeles.

2012

Britton v. Girardi

Additional victims of the 1994 Northridge earthquake allege Girardi misappropriated funds from an insurance coverage settlement. The case was ultimately dismissed as time-barred, with an appellate panel using the Prakashpalan case as precedent.

The case is Britton v. Girardi, case number BC492978, in the Superior Court of the State of California, County of Los Angeles.

2014
Judith Allen et al. v. Girardi Keese

Elderly patients allege Girardi misappropriated funds from a deal to resolve claims that the hormone-replacement drug Prempro caused their cancer. Girardi settled the case for an undisclosed amount after the plaintiffs' counsel obtained Girardi Keese's bank records and filed a detailed motion for contempt.

The case is Judith Allen et al. v. Girardi Keese, case number 2:14-cv-02721, in the U.S. District Court for the Central District of California.

2016
Kranich v. Girardi et al.

Kranich, another former Lockheed employee, alleges Girardi misappropriated funds from a settlement for on-the-job exposure to chemicals. Kranich further accused Girardi of stealing $8.5 million from a batch of settlements, saying the attorney in 2005 used $3.5 million of that sum to settle a previous Lockheed settlement-skimming suit. Kranich's case was dismissed as time-barred.

The case is Kranich v. Girardi et al., case number 2:16-cv-01209, in the U.S. District Court for the Central District of California.

2017
Richard Fair v. Thomas V. Girardi et al.

Residents of the Carousel housing tract in Carson, California, allege Girardi misappropriated funds from a settlement reached with Shell Oil Co. and Dole Food Co. to resolve claims the companies concealed that their neighborhood was built on a toxic waste dump. Girardi Keese tried and failed to have the case transferred to a retired judge in 2019. The case is pending.

The case is Richard Fair v. Thomas V. Girardi et al., case number BC665472, in the Superior Court of the State of California, County of Los Angeles.

2019
Joseph Ruigomez et al. v. Girardi Keese et al.

A family whose home was destroyed in the 2010 San Bruno natural gas pipeline explosion alleges Girardi took millions of dollars from their settlement with Pacific Gas & Electric Co. Girardi settled the case for $12 million in 2020 but has not paid the full amount.

The case is Joseph Ruigomez et al. v. Girardi Keese et al., case number 19STCV22296, in the Superior Court of the State of California, County of Los Angeles.

2020
Judy Selberg v. Thomas V. Girardi et al.

A woman whose husband died in a boating accident alleges Girardi took $450,000 of her $500,000 wrongful death settlement. The case is pending.

The case is Judy Selberg v. Thomas V. Girardi et al., case number 20STCV41541, in the Superior Court of the State of California, County of Los Angeles.

In re: Lion Air Flight JT 610 Crash

Five clients allege Girardi took at least $2 million from settlements reached with Boeing over the deaths of their relatives in a 2018 plane crash.Edelson alerted the Chicago federal judge overseeing the case in December about the missing funds. An attorney for Girardi and his law firm admitted the money was missing from a trust account, prompting the judge to freeze the assets of Girardi and Girardi Keese.

The case is In re: Lion Air Flight JT 610 Crash, case number 1:18-cv-07686, in the U.S. District Court for the Northern District of Illinois.

In re: Thomas Vincent Girardi / Girardi Keese

In bankruptcy proceedings, at least two additional former Girardi Keese clients have so far filed claims totaling about $2 million against Girardi and the firm. One of the cases involved a woman who had reached a settlement with a retailer and a car seat manufacturer after her child was left severely disabled in a car collision.

The bankruptcy cases are In re: Thomas Vincent Girardi, case number 2:20-bk-21020, and In re: Girardi Keese, case number 2:20-bk-21022, in the U.S. Bankruptcy Court for the Central District of California.

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Don't Be Tardy for this Lawsuit: Copyright & Bad Claims