A litigation funder that worked with Tom Girardi called new accusations in a proposed racketeering lawsuit brought by Edelson PC “truly offensive” and a “smear campaign.”

California Attorney Lending II, a Buffalo, New York-based lender to Girardi’s law firm, Girardi Keese, was named in a draft complaint submitted on Tuesday as part of an agreement Edelson reached to pay clients of the Lion Air crash their $2 million in stolen settlement money. The complaint, which seeks $50 million in punitive damages, accuses two former Girardi Keese partners, the law firm’s former bookkeeper, a consultant and Erika Girardi, who is divorcing Tom Girardi, of operating a “criminal enterprise, disguised as a law firm,” and says California Attorney Lending II benefitted from the scheme.

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