US judge ends Giuliani's bankruptcy, paves way for defamation, harassment lawsuits

A U.S. judge has terminated Rudy Giuliani’s bankruptcy protection, allowing a series of defamation, sexual harassment, and other claims to proceed against the former lawyer of ex-President Donald Trump.

On Friday, US Bankruptcy Judge Sean Lane delivered the critical ruling from White Plains, New York, which not only ended Giuliani’s bankruptcy but also prohibited him from seeking such protection for one year.

This decision reignites several high-profile lawsuits that had been frozen, including a defamation claim from two Georgia election workers and allegations of sexual harassment.

The 80-year-old former New York City mayor sought bankruptcy protection in December after a Washington, D.C., court mandated him to pay $148 million to Wandrea “Shaye” Moss and her mother Ruby Freeman. Giuliani had falsely accused the two of manipulating votes in the 2020 presidential election, which President Joe Biden won. The bankruptcy filing had initially stalled this judgment and other lawsuits linked to Giuliani’s work for Trump during efforts to overturn the 2020 election results.

With the dismissal of his bankruptcy case, Giuliani’s creditors are now free to resume their lawsuits, while Giuliani gains the opportunity to appeal the $148 million defamation judgment. Heath Berger, Giuliani’s lawyer, confirmed that the former mayor intends to pursue this appeal.

Giuliani’s defamation of Moss and Freeman can be traced back to a December 2020 hearing before Georgia lawmakers. The Trump campaign, led by Giuliani, falsely presented surveillance footage from a ballot-processing room as irrefutable evidence of election fraud. Giuliani repeatedly identified Moss and Freeman by name, labeling them as “crooks” involved in vote theft. As a result, both women were subjected to severe threats and harassment.

Rachel Strickland, the attorney representing Moss and Freeman, expressed satisfaction with the ruling. “We are pleased the court saw through Mr. Giuliani’s games and put a stop to his abuse of the bankruptcy process,” she stated.

Judge Lane criticized Giuliani for his “continued failure to meet his reporting obligations and provide the financial transparency required of a debtor.” Giuliani’s personal and business financial disclosures were consistently late and incomplete. Notably, Giuliani’s bankruptcy lawyers were unaware of his promotion of a coffee brand until creditors flagged it, revealing significant lapses in transparency.

After seven months in Chapter 11, there was negligible progress on a potential bankruptcy settlement. Judge Lane concluded that ending the bankruptcy would save resources that could otherwise be wasted on accumulating fees, which would ultimately diminish Giuliani’s ability to satisfy his creditors.

Creditors accused Giuliani of flouting bankruptcy rules and continuing extravagant spending post-filing. Payments to his girlfriend Maria Ryan and her daughter, unreported business income, and defamatory statements leading to the cancellation of his WABC radio show were among the highlighted concerns.

In addition to Moss and Freeman, Giuliani faces claims from former employee Noelle Dunphy, who has accused him of sexual assault and wage theft. Voting machine companies Dominion and Smartmatic have also lodged defamation suits against him. Giuliani has refuted these allegations.

Giuliani is concurrently battling criminal charges in Georgia and Arizona for allegedly assisting Trump’s attempts to overturn the election. He has pleaded not guilty, dismissing the accusations as politically motivated.

Once a respected Manhattan U.S. Attorney, Giuliani’s legal license was revoked earlier this month. A court found that