Erika Girardi is firing back!
According to The Blast, Erika and Tom are being sued by Stillwell Madison, who accuses the couple of failing to pay their debt. Instead, Stillwell Madison claims the couple used the money to fund their lavish lifestyle.
In 2019, Stillwell Madison sued Erika, Tom, and his law firm; claiming to have provided Tom’s law firm with a $5,110,440.38 loan in 2016.
They claim Tom promised to turn over financial statements and repay the loan in a timely fashion. However, according to the lender that didn’t happen.
“Mr. Girardi re-directed all or part of the proceeds, to which Stillwell was contractually entitled, to himself and his wife in order to sustain their lavish lifestyle and maintain their glamorous public image,” said Stillwell Madison.
The lender also accuses Tom of failing to make any payments on the loan even after agreeing to a repayment schedule. They allegedly agreed that Tom would to make payments of $500k starting in October 2018 and ending in September 2019.
“Mr. Girardi has never followed through on any of his proposals—reinforcing the indication that he (nor the Firm) has, and continues to not have, any intention of repaying the loan balance.”
Adding, that they “would not have provided the Loan had it known that Defendants were going to use the Loan proceeds to, upon information and belief, support Mr. and Mrs. Girardi’s high-end lifestyle.”
Despite the allegations, Tom and Erika aren’t sitting back and doing nothing. Instead, they are attacking this lawsuit head-on.
“The current action was filed as a publicity stunt,” Tom and Erika said.
They add, “Plaintiff filed in federal court using such highly charged language as “lavish lifestyle” and “glamorous public image” with the goal to try to use the Court system as a publicity campaign.”
The reality TV couple is also demanding the lawsuit be removed from the public eye and moved to arbitration. They claim that per their contract with the lender the case must be handled in arbitration and not federal court. A judge has yet to rule on this request.