The former New York City mayor was found liable for baselessly defaming the duo in an effort to overturn Donald Trump's 2020 election defeat, causing them to face racist and violent threats.

Giuliani, who filed for bankruptcy in December, must now seek pre-approved donors to cover his legal expenses as mandated by the bankruptcy judge overseeing his case. Furthermore, any fees and expenses accumulated during the Freeman litigation will not be paid from Giuliani's existing assets, as specified by the U.S. Bankruptcy Judge Sean Lane.

It was highlighted that Giuliani's son serves as the president of Giuliani Defense, a legal defense fund, prompting Freeman and Moss to seek clarity on the fund's funding sources. Giuliani has denied donating any money to either of his legal defense funds, raising questions regarding financial transparency.

These legal proceedings follow a recent ruling in a fraud case involving Donald Trump, where a judge imposed a fine exceeding $350 million, totaling over $450 million with interest. The judgment reflected the court's view of Trump's and his executives' lack of contrition and remorse, culminating in a significant financial penalty.