In February 2022, the public learned that Erika Jayne’s company, EJ Global, was suspended by the state of California. Erika revealed this information in response to a $2.1 million lawsuit (regarding her husband Tom Girardi‘s alleged embezzlement).
The suspension was a setback for the Real Housewives of Beverly Hills star, who is now estranged from Tom, the once-prominent attorney. The lawsuit claims his firm used its own money to pay EJ Global’s bills. Although Erika hasn’t been charged with a crime, certain plaintiffs believe she was involved in a conspiracy plot.
According to new court docs obtained by Radar, EJ Global is still in suspension. This means Erika cannot use the company for any business-related endeavors or to transfer/sell property. Additionally, she cannot close the business until its issues are fixed.
In the documents, Erika’s attorney, Evan C. Borges, said EJ Global cannot respond to the suit because “it is currently in suspended status with the California Secretary of State and a suspended corporation is not permitted to appear in this action.”
The reason for its suspension is still unknown, but her tax returns seemingly have something to do with it. Her attorneys say the tax returns were handled by Tom’s law firm. They explained, “Ms. Girardi and her counsel are investigating the reason for the suspended status and intend to remedy the issue and revive the corporate status as soon as possible, so that EJ Global may appear in this action and file an Answer.”
Her attorneys also stated, “The delay has been due to the fact that to revive EJ Global, it may be necessary to file tax returns for years as to which Ms. Girardi has no records or information, given that as noted above, the financial records of EJ Global were maintained in the past by GK [Tom’s law firm], the outside accountants retained by GK, or both.”
The documents say Erika is asking a judge to dismiss the lawsuit. The star denied playing a part in “aiding and abetting” Tom’s alleged embezzlement.
“Ms. Girardi further denies, generally and specifically, that Ms. Girardi has engaged in any wrongful conduct,” said the doc, “or that Plaintiffs have been damaged in any amount, or at all, by reason of any act or omission of Ms. Girardi.”
One of the lawyers who is suing Tom, Manuel H. Miller, was working with him in the past, and he claims they had an agreement by which they would split all fees from a case. Manuel, however, said Tom never dispersed the funds.
According to Erika’s counsel, this fee agreement is “unethical, illegal and unenforceable” in California.
Her attorney previously told Radar that the lawsuit “sounds like another misguided effort to blame Erika for the conduct of others.” He continued, “The bottom line is Erika believed, as did most of the legal community, that her husband was extremely wealthy. Erika has no law degree and never worked at the law firm. She was an entertainer.”
