Former New York City Mayor Rudy Giuliani’s attempt to evade a $148 million defamation verdict by declaring bankruptcy is facing a legal challenge, according to reports from Law and Crime on Saturday, February 24, 2024.
The defamation lawsuit, filed on behalf of former Georgia election workers Ruby Freeman and Wandrea’ ArShaye “Shaye” Moss, asserts that Giuliani cannot use the bankruptcy process to escape accountability for his actions.
Attorney Rachel C. Strickland, specializing in bankruptcy restructuring, initiated an adversary case in the Southern District of New York Bankruptcy Court, asserting that bankruptcy should not serve as a shield against accountability for defamatory actions.
The lawsuit originates from Giuliani’s false allegations against Freeman and Moss in the aftermath of the 2020 U.S. presidential election. Giuliani accused them of engaging in fraudulent activities and tampering with Georgia’s election process. This led to a defamation lawsuit from Freeman and Moss, resulting in a $148 million verdict against Giuliani.
Giuliani filed for bankruptcy just three days after the judgment, raising concerns that it was an attempt to escape the hefty defamation penalty. The legal maneuver prompted Freeman and Moss’s legal team to take action, emphasizing that bankruptcy should not be exploited to evade financial obligations resulting from intentional wrongdoing or misconduct.
The legal battle highlights the principle that bankruptcy cannot be used to escape responsibility for spreading falsehoods and tarnishing the reputations of others. The outcome of the proceedings will have far-reaching implications for both Giuliani and the legal landscape surrounding defamation and bankruptcy.
As the legal challenge unfolds, Freeman and Moss’s legal team remains steadfast in their pursuit of justice, emphasizing the broader issue of accountability in cases involving defamation and false allegations. The case serves as a significant moment in determining the limits of using bankruptcy as a shield against intentional wrongdoing, particularly in high-profile defamation cases.
