Harvey Weinstein reaches $44M settlement with accusers, creditors
Disgraced movie mogul Harvey Weinstein has reached a tentative $44 million settlement with women who have accused him of sexual assault as well as creditors of his former studio, according to two people familiar with the arrangement.
The proposed deal, which has not been finalized, was hammered out this week during mediation hearings stemming from bankruptcy proceedings for the Weinstein Co., according to the knowledgeable people who were not authorized to speak publicly.
Under the proposed settlement, $30 million would be earmarked for accusers, unsecured creditors and former Weinstein Co. employees, according to one of the people. The remaining $14 million would be used to pay legal fees, this person said.
Insurance companies, potentially including Chubb Limited and AIG, are expected to make the payment on behalf of the Weinstein Co., which filed for bankruptcy last year.
One knowledgeable person said Walt Disney Co., which previously owned Bob and Harvey Weinstein’s successful studio Miramax, also could contribute funds to cover alleged misconduct while that studio was part of the Burbank entertainment giant.
“It’s been a long complex process and we do feel this settlement provides a measure of justice though it’s not everything one might hope for and it reflects a long effort to reach a compromise between different parties that have claims to some of the money from the whole Weinstein enterprise,” said Aaron Filler, an attorney representing one of the plaintiffs, actress Paz De La Huerta.
The move comes 19 months after allegations of misconduct were first detailed, unleashing a cascade of allegations from dozens of women who came forward with allegations of assault, rape and verbal abuse. The groundswell gave rise to the #MeToo movement, which prompted Hollywood to take a sobering look at how it conducted business.
The Wall Street Journal first reported the tentative settlement, saying that news of the deal was raised during a bankruptcy court hearing in Wilmington, Del.
Thursday’s tentative agreement follows months of contentious mediation hearings. The goal has been to reach a global settlement that would resolve all of the civil suits lodged against Weinstein. More than a dozen lawsuits have been filed on behalf of accusers.
Over the past year, the mediator has conducted at least 11 sessions, some of which were “highly adversarial,” according to court filings.
Weinstein Co. was sold out of bankruptcy last year to Lantern Capital Partners for $289 million, including debt. That deal was structured so that Weinstein himself would not profit from the new entity.
The case is a civil matter so it does not alter criminal prosecutions by various law enforcement bodies.