A judge has dismissed Rudy Giuliani’s bankruptcy case, clearing the way for election workers Ruby Freeman and Shaye Moss to pursue a $148 million defamation judgment against the former New York City mayor. The decision came after U.S. Bankruptcy Judge Sean Lane condemned Giuliani for his “uncooperative conduct” and attempts to evade financial responsibility.
“Ruby Freeman and Shaye Moss have already waited too long for justice,” said Rachel Strickland, the lawyer representing the two women.
Judge Lane criticized Giuliani for his lack of transparency, failure to comply with court orders, and unwillingness to disclose his income sources. Among other issues, Giuliani was found to have funneled income from his talk radio show and other ventures into his own companies, failed to report earnings from his “Rudy Coffee” brand, and was late in disclosing a book contract.
“Such a failure is a clear red flag,” Lane wrote in his decision.
The dismissal of Giuliani’s bankruptcy case does not eliminate his debts. Creditors are now free to seek other legal means to recover the money they are owed, including seizing Giuliani’s assets. Giuliani can still appeal the defamation verdict, which stems from his efforts to challenge Donald Trump’s 2020 presidential election loss.
Lane had hinted at a hearing earlier in the week that he was likely to dismiss the case. Giuliani’s lawyer explored alternative options to keep the case active but ultimately agreed that dismissal was the best course of action. The ruling includes a 12-month ban on Giuliani filing for bankruptcy again.
“Transparency into Mr. Giuliani’s finances has proven to be an elusive goal,” Lane noted, expressing skepticism that this would improve.
Ted Goodman, a spokesperson for Giuliani, equated the bankruptcy case to the “grossly unfair” defamation lawsuit, citing what he called overly broad discovery requests and alleged leaks aimed at harming Giuliani. Goodman claimed, without evidence, that Giuliani’s legal issues were politically motivated retribution for investigating President Joe Biden’s son, Hunter. Nonetheless, Goodman maintained confidence that “our system of justice will be restored and the mayor will be totally vindicated.”
Giuliani, a prominent ally of Trump, filed for bankruptcy last December following the substantial damages award to Freeman and Moss. The bankruptcy filing had temporarily halted collection of the debt.
During the hearing, Strickland accused Giuliani of using bankruptcy as a “bad-faith litigation tactic” and a means to delay facing his obligations. She urged the judge to dismiss the case so they could enforce the judgment.
“We are pleased the court saw through Mr. Giuliani’s games and put a stop to his abuse of the bankruptcy process,” Strickland said on Friday. “We will begin enforcing our judgment against him ASAP.”
