Advertisement

Weinstein Co deal should include more funds for victims: New York AG

From Reuters - February 12, 2018

NEW YORK (Reuters) - New Yorks attorney general said on Monday a deal for the Weinstein Company should include a bigger compensation fund for victims of ex-chairman Harvey Weinstein, speaking a day after the states lawsuit scuttled a deal.

The film and TV studio was close to inking a deal on Sunday to sell itself for more than $500 million to an investor group led by Maria Contreras-Sweet, a former official in President Barack Obamas administration, when New York Attorney General Eric Schneiderman filed a civil rights lawsuit against the company. People familiar with the matter said the lawsuit put sale negotiations on hold.

Schneiderman said he wants the facts of our complaint factored into whatever deal is structured going forward. The lawsuit does not block the sale but creates liabilities that make it difficult to finalize. A sale to Contreras-Sweet is now unlikely to advance, sources told Reuters.

The Weinstein Company did not immediately return a request for comment. A representative for Contreras-Sweet declined to comment.

The Weinstein Company has been seeking a deal that would spare it from bankruptcy after more than 70 women accused Harvey Weinstein, once one of Hollywoods most influential men, of sexual misconduct including rape. Weinstein denies having non-consensual sex with anyone.

Schneiderman said at a press conference on Monday that he wanted to ensure a dedicated victim's compensation fund that would not be gobbled up by legal fees and other expenses. Contreras-Sweet had proposed about $30 million for victims in her initial bid made late last year, Reuters reported. (reut.rs/2iAmw2O)

Advertisement

Continue reading at Reuters »