[Ed. – Will he threaten to sue CNN, other news outlets for reporting this story?]
A US bankruptcy court judge on Tuesday ordered the law firm of Stormy Daniels’ attorney Michael Avenatti to pay a $10 million judgment to an attorney who once worked for the firm, according to court documents.
The judgment comes after Avenatti’s firm, Eagan Avenatti LLP, failed to make the first payment on a $4.85 million settlement with lawyer Jason Frank, a one-time partner at the firm. During Tuesday’s hearing, a lawyer for the federal government also said Avenatti’s firm failed to make a payment for back taxes that was due last week.
Avenatti is the managing partner of Eagan Avenatti, according to court documents.
In a text to CNN asking for his response to the judgment, Avenatti said, “Completely irrelevant and a sideshow. Nothing was issued against me personally. That firm has nothing to do with the case or the client. Who cares?”
The settlement, reached in December 2017, stemmed from Frank’s claim that Avenatti’s firm failed to pay him more than $18 million that he was owed as a non-equity partner of the firm, and that Avenatti misstated the firm’s profits.