In the wake of a staggering $148 million defamation verdict, former New York Mayor Rudy Giuliani is gearing up for a tenacious legal fight, albeit under the looming shadow of bankruptcy. Granted limited permission by a U.S. bankruptcy judge, Giuliani is poised to contest the astronomical damages awarded to Wandrea “Shaye” Moss and her mother, Ruby Freeman, whom he falsely accused of fraud following Donald Trump’s 2020 election loss.
During a recent court hearing in White Plains, New York, U.S. Bankruptcy Judge Sean Lane permitted Giuliani to seek a new trial, exclusively focused on challenging the quantum of damages, but ruled out a full-fledged appeal. However, this green light comes with a prerequisite – Giuliani must provide detailed information about the backers funding his legal defense, as financial constraints continue to tighten around him.
Gary Fischoff, an attorney representing Giuliani, stressed the financial strain on his client, highlighting the former mayor’s inability to foot the $148 million bill, let alone satisfy other pending lawsuits. Giuliani’s bankruptcy filing in December revealed scant assets, primarily tied to real estate, and a modest income derived from his podcast and radio show, the latter now hampered by his suspension from the practice of law.
“He’s currently suspended from the practice of law, so he can’t earn income right now as a lawyer,” Fischoff explained, emphasizing the absence of a financial windfall for Giuliani. The attorney affirmed Giuliani’s commitment to full disclosure regarding his funding sources, with further details expected to be presented to the bankruptcy court in the coming week.
Giuliani’s bankruptcy filing, strategically timed on December 21, effectively halted all ongoing litigation against him, including attempts to enforce the $148 million judgment and other defamation lawsuits stemming from election-related claims.
In addition to the massive defamation verdict, Giuliani is grappling with a barrage of debts linked to his previous role as Trump’s personal lawyer. Seeking a limited reopening of the election workers’ lawsuit, Giuliani argued that bankruptcy laws are designed to shield debtors in his position from protracted legal battles.
The opposition, represented by attorney Rachel Strickland on behalf of Moss and Freeman, contended that Giuliani was exploiting bankruptcy to shield himself while perpetuating attacks on the federal court’s judgment. Strickland asserted that Giuliani’s actions, both before and after the defamation judgment, amounted to “despicable things” and an ongoing defamation campaign against Moss and Freeman.
Giuliani’s bankruptcy case lists notable creditors, including those who have filed lawsuits against him – Moss and Freeman, Hunter Biden, Noelle Dunphy, and voting machine company Smartmatic. The pending Freeman and Moss judgment, according to Fischoff, threatens to engulf Giuliani financially, leaving little room for settlement with other creditors.
Among Giuliani’s substantial debts are approximately $1 million in federal and state taxes, and $1.4 million in unpaid legal fees related to his role as Trump’s personal lawyer. Complicating matters further, Giuliani faces criminal charges of election subversion in Georgia, alongside Trump and several co-defendants, all while confronting the suspension of his law license in New York and the looming specter of disbarment in Washington.
As Giuliani navigates this intricate legal web, the outcome remains uncertain, with creditors, legal adversaries, and the specter of criminal charges converging to define the former mayor’s precarious financial and legal standing.
