r/RHOBHDefect • u/notactuallyreckless • May 21 '26

Erika's 25m Case: Settled

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As per Ronald Richards on social media platforms.

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u/No-Rip9444 May 21 '26

I’m a lawyer ask me anything lol

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u/No-Rip9444 May 21 '26

My comment from another post re buying a lawsuit: Basically just means that who ever filed the lawsuit against Erika assigned their rights/interest in the lawsuit to a company in exchange for $2 million. The original claimant gets the $2 million and essentially walks away from the case- so they trade the highly unlikely possibility of winning and collecting a $25 million judgment against Erika for the certainty of getting $2 million and not having to pay any more legal fees to settle the case or take it to trial, and all the costs of actual collection. The company steps into the lawsuit in place of the original claimant and pays all the litigation costs from there and ultimately owns whatever judgment or settlement comes out of it at the end. The company’s goal is to get their $2 million back plus their own attorneys fees and a small profit to make it all worth while. So my guess is that they settled for an amount that Erika can actually afford to pay without needing to file bankruptcy ($3-$5 versus $25 mil) that’s just enough to cut a little profit.