A federal judge in New York has dismissed Rudy Giuliani's bankruptcy case.
The dismissal of the case allows Ruby Freeman, Shaye Moss, and other of Giuliani's creditors to resume legal action to collect their money from the former attorney to Donald Trump, as the Washington Examiner reports.
U.S. Bankruptcy Judge Sean Lane's decision comes seven months after Giuliani, the former mayor of New York City and attorney, initiated bankruptcy proceedings. Giuliani had sought to avoid a $148 million payment stemming from a defamation lawsuit.
Freeman and Moss, election workers wrongfully accused by Giuliani of manipulating the 2020 presidential election results, are at the center of the defamation case. Judge Lane pointed out that Giuliani was misusing the bankruptcy process to delay settling the claim.
This ruling allows all lawsuits against Giuliani to proceed, ending their temporary suspension due to the bankruptcy case. The unraveling legal defenses come with financial pressures as Giuliani faces additional defamation suits and a sexual harassment claim. Significantly, the judge criticized Giuliani for his financial disclosure failures. He provided incomplete statements, missed deadlines, and appeared to hide assets.
When Rudy Giuliani listed his debts, they totaled $153 million, covering legal fees and taxes. Yet, his disclosures revealed less than $100,000 in available funds by the end of May.
Giuliani did not disclose his net worth or business financial information, causing suspicion among creditors' lawyers. Subpoenas were issued to associates like Mike Lindell, the CEO of My Pillow, to get a clearer picture of Giuliani’s assets.
Philip C. Dublin, representing the creditors, provided a scathing commentary. “Since day one, Giuliani has regarded this case and the bankruptcy process as a joke, hiding behind the facade of an elderly, doddering man who cannot even remember the address for his second multimillion dollar home and claims impending homelessness if he must sell that second multimillion dollar home,” he remarked.
This ruling reopens the door for Freeman, Moss, and other creditors to pursue their claims actively. The defamation suit has brought significant attention to false election claims made by figures close to former President Donald Trump.
Moreover, Dominion Voting Systems and Smartmatic have also filed defamation lawsuits against Giuliani. These cases are part of a larger legal reckoning surrounding baseless allegations about the 2020 election.
Adding to the financial and legal pressures, a sexual harassment claim by Nicole Dunphy further complicates Giuliani's situation. The confluence of these lawsuits presents a considerable challenge ahead for him. Since the dismissal, all pending lawsuits against Giuliani are now resumed. This legal momentum shifts attention back to the original defamation claims and additional pending litigation.
The ruling undermines Giuliani’s financial defense tactics, emphasizing the judiciary's stance against misuse of legal processes to delay debt payments. With this judgment, creditors are poised to advance their collection efforts.
Giuliani finds himself grappling with significant debts and ongoing court battles. Despite the bankruptcy attempt, his financial disclosure failures paint a grim picture of his economic standing. The legal unraveling continues as these renewed lawsuits and financial investigations proceed. Giuliani’s strategy and assets will now undergo intensified scrutiny by creditors and courts alike.
