According to The Blast, Tom paid “$2,982,272.42 owed on a $6 million debt,” but to make the lawsuit go away entirely, he will have to drop another $3M.
Back in January, Tom was hit with a $6M lawsuit by Law Finance Group, who claims that they gave Girardi a $15M loan “to fund the operations of his firm.”
Law Finance Group says Girardi failed to pay all of the loan back. According to the group, Girardi only paid $10M on the loan, so they slapped him with a lawsuit for $6M.
They also accused Tom of using the $15M loan to fund his lavish lifestyle and to keep his law firm afloat.
However, this lawsuit didn’t just come out of nowhere.
According to court docs, Law Finance Group attempted to work out a payment plan with Girardi before taking legal action.
In August 2018, Law Finance Group and Girardi agreed to a repayment plan, but the lender says Girardi breached that agreement.
The deal involved Girardi making monthly payments, in addition to a “$1 million payment by the end of October” and a “$5 million by January 1.”
Girardi also allegedly promised to use his Pasadena home as collateral in case he failed to make payment.
Meanwhile, Tom Girardi has denied all the claims made by Law Finance Group.
In a statement to The Blast, Girardi said: “The truth of the matter is this. I have not taken one penny from the law firm in the past three years. I have devoted everything to assist in the cases that we have here. Further, the money that was borrowed, we agreed to repay in approximately two weeks before the lawsuit. It is slanderous that the money was for my ‘lifestyle’ … every penny went for costs in cases that the firm is handling.”
Thoughts on Tom paying off his lawsuit?
Source: The Blast