Girardi & Keese

Last updated
Girardi & Keese
Headquarters Los Angeles
Date founded1965
Founder Thomas Girardi, Robert Keese
DissolvedJanuary 2021
Website Girardi & Keese at the Wayback Machine (archived December 3, 2020)

Girardi & Keese or Girardi Keese was a Los Angeles law firm headquartered on Wilshire Boulevard. It was founded in 1965 by lawyers Thomas Girardi and Robert Keese. [1] [2] It was known for representing plaintiffs against major corporations, including Merck, Boeing and Pacific Gas & Electric. [1] Chapter 7 Bankruptcy petitions were filed by creditors against the firm in December 2020 and it was defunct by January 2021.

Contents

Girardi and Christopher Kamon, the firm's accountant, were indicted in Los Angeles in 2023 by a federal grand jury for allegedly embezzling more than $15 million from several of the firm's legal clients. [3] Girardi, Kamon and attorney David Lira are also facing disbarment trials and federal wire fraud charges in Chicago. [4]

Prominent cases

Pacific Gas & Electric

One of the firm's best known cases was against Pacific Gas & Electric (PG&E). Residents of the Mojave Desert community of Hinkley, California, blamed incidents of cancer and other diseases on contaminated water leaked from a gas pumping station owned and operated by PG&E. [5] In 1996 the utility company agreed to settle for $333 million, the largest ever paid in a direct-action lawsuit at the time. [6] The case was the inspiration for the film Erin Brockovich (2000) starring Julia Roberts. Girardi was thanked in the credits and served as an adviser on the film. [7]

In 2019, PG&E counter-sued the Law Finance Group, which sued Girardi for funds that he borrowed on behalf of clients. The litigation funder's lawyer said the loan agreement states the loan was to Girardi and his firm. [8]

Merck

In 2007, Merck created a $4.85 billion settlement fund for the thousands of plaintiffs who complained of complications associated with its pain medication Vioxx. It is believed to have been the largest drug settlement ever. [9]

Lion Air crash

The firm represented some of the families affected by the October 2018 crash of Lion Air Flight 610 in Indonesia that killed 189 people aboard the plane. Boeing, the maker of the 737 MAX aircraft, reportedly settled cases for at least $1.2 million per claim. [10] Rather than sending their clients all of their settlement money, federal prosecutors in 2023 said Girardi and his co-defendants embezzled more than $3 million and used it to pay for the law firm's operating expenses and payroll, to pay off credit card bills, and to fund settlements to other clients "whose own settlement funds previously had been misappropriated" by the firm. [11]

Girardi has been indicted on eight counts of wire fraud and four counts of criminal contempt of court connected with the Lion Air case. David Lira, an attorney at the firm, and Christopher Kamon, the former head of accounting at the firm, both were also charged with eight counts of wire fraud and four counts of criminal contempt of court. Lira is married to Girardi's daughter, Jacqueline. [11] [12] A Chicago judge has set a trial date of May 5, 2025, in the cases against Lira and Kamon, but has not set a date for Girardi's trial. [4] With disbarment trials also pending, a state bar judge sanctioned Lira and Kamon in January 2023, for both mishandling and for not protecting client assets. [13]

Disbarment and Chapter 7 bankruptcy

Two Chapter 7 involuntary bankruptcy petitions were filed in December 2020, and no one from the firm, including Girardi, appeared before U.S. Bankruptcy Judge Barry Russell at the first bankruptcy hearing in January 2021 to "discuss the future of his personal assets and those of his Los Angeles firm, Girardi Keese." [14] In April 2021, it was announced that the law office will be sold. [15] On June 1, 2022 Girardi was disbarred and ordered to pay $2,282,507 plus 10% in restitution to clients who never received settlement funds. Girardi was charged with 14 counts of violating ethics rules by the California State Bar. [16] [17]

A February 2023 internal investigation conducted on the State Bar of California by an outside firm found that its employees had accepted gifts, travel, meals, and other items of value from Girardi & Keese, [18] influencing the State Bar to block complaints against the law firm. The Bar disclosed that, across four decades, during which it had received 205 complaints against Girardi, the Bar had taken no action against the attorney, and had dismissed all cases. [19] [20]

Politics

In 2004, the firm gave $50,000 to the unsuccessful effort to defeat the 2004 California Proposition 64.

In 2008, the firm donated $225,000 in support of 2008 California Proposition 93, which was rejected by voters. [1]

In January 2021, Girardi was removed from California Governor Gavin Newsom's Judicial Selection Advisory Committee, which vets judges for the state bench. [21]

Related Research Articles

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References

  1. 1 2 3 "Girardi and Keese". Ballotpedia. Retrieved 2020-05-08.
  2. ↑ "Girardi & Keese - Company Profile and News - Bloomberg Markets". www.bloomberg.com. Retrieved 2020-05-08.
  3. ↑ "Grand Jury Charges Disbarred Plaintiffs' Lawyer Tom Girardi with Wire Fraud for Allegedly Embezzling Over $15 Million in Client Money". www.justice.gov. 2023-02-01. Retrieved 2024-03-30.
  4. 1 2 Thomas, David (February 2, 2024). "Girardi firm lawyers get 2025 trial date in Chicago fraud case". reuters.com. Retrieved March 31, 2024.
  5. ↑ Lack, Walter (January 4, 1994). "Erin Brockovich, Famous Trials". lawbuzz.com. Archived from the original on May 11, 2000.
  6. ↑ "Erin Brockovich: the real story of the town three decades later". ABC News. June 10, 2021. Retrieved 2024-03-31.
  7. ↑ Goldstein, Matthew (January 13, 2021). "A Hall of Fame Lawyer, a 'Real Housewife' and a Stunning Fall". nytimes.com. Retrieved March 30, 2024.
  8. ↑ Todd, Ross (January 24, 2019). "Girardi Keese Partner Bucks Back Against Alleged $15M Debt to 'Miserable, Rotten' Litigation Funder" . The Recorder.
  9. ↑ "Timeline: The Rise and Fall of Vioxx". NPR.org. November 10, 2007. Retrieved March 31, 2024.
  10. ↑ Johnson, Eric M (July 7, 2020). "Boeing settles nearly all Lion Air 737 MAX crash claims - filing". Reuters.com. Retrieved March 31, 2024.
  11. 1 2 Feurer, Todd (2023-02-01). "Lawyer for Lion Air crash victims indicted for embezzlement - CBS Chicago". www.cbsnews.com. Retrieved 2024-03-31.
  12. ↑ "4th Annual Fall Alumni Mass". Mayfield Junior School. 2008-12-05. Retrieved 2024-03-31.
  13. ↑ Ryan, Harriet; Hamilton, Matt (January 23, 2024). "Two lawyers at Tom Girardi's law firm sanctioned over mishandling of client money". Los Angeles Times. Retrieved 26 May 2024.
  14. ↑ "At 1st Bankruptcy Hearing, Embattled Attorney Tom Girardi Is a No-Show", by Amanda Bronstad, The Recorder, January 5, 2021.
  15. ↑ “ Tom Girardi's Law Office Will Be Sold Soon, as His Home Goes on the Market, Trustee Tells Court”, by Amanda Bronstad, The Recorder, April 27, 2021.
  16. ↑ Cutler, Joyce E. (2022-06-01). "Tom Girardi Disbarred, Court Orders $2.3 Million Restitution (1)". Bloomberg Law News. Retrieved 2024-02-02.
  17. ↑ Weiss, Debra Cassens (2022-06-03). "Plaintiffs lawyer Tom Girardi, estranged husband of 'Real Housewives' star, is disbarred". ABA Journal. Retrieved 2024-02-02.
  18. ↑ Cutler, Joyce E. (2023-03-13). "Girardi Probe Shows Internally Corrupt California State Bar". Bloomberg Law News. Retrieved 2024-02-08.
  19. ↑ Ryan, Harriet; Hamilton, Matt (2022-11-03). "Tom Girardi faced more than 150 complaints before State Bar took action, records show". Los Angeles Times. Retrieved 2024-02-02.
  20. ↑ Weiss, Debra Cassens (2023-03-13). "State bar finds 'shocking past culture of unethical and unacceptable behavior' in its handling of Girardi complaints". ABA Journal. Retrieved 2024-02-02.
  21. ↑ Lowrey, Brandon (January 27, 2021). "Girardi's Legacy In Shambles Amid 'Shakespearean' Scandal - Law360 Pulse". www.law360.com. Retrieved 2024-03-31.


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