Judge rejects Weinstein deal with accusers
NEW YORK — A federal judge Tuesday upended a $19 million proposed civil settlement between Harvey Weinstein, his former film company and dozens of women who have accused him of sexual harassment and misconduct.
In a contentious Tuesday hearing, Judge Alvin Hellerstein of the Southern District of New York denied a motion for preliminary approval of the settlement agreement. He questioned its overall fairness, and whether the women, whose allegations vary, constituted a legal class.
He also questioned how the money would be allocated and called the millions of dollars in legal fees that would have been allotted to Weinstein and his former company directors “obnoxious.”
The proposed deal, which also includes the New York attorney general and creditors of The Weinstein Co., has been controversial since its contours first came into view, in part because it did not require Weinstein to admit wrongdoing or make any payments to his alleged victims, relying instead on insurance coverage.
In the run-up to Tuesday’s hearing, several alleged victims filed formal objections, calling the settlement unfair to the women on multiple counts.
“The judge identified so many problems, it was not even close,” said John Clune, who represents one of the women objecting to the proposal.
In the proposed settlement, which also would have required approval from a federal bankruptcy court in Delaware, the insurance companies would pay $12 million toward some, but not all, legal costs for Weinstein; his brother, Bob; and other former members of their company’s board. The board members would be insulated from future liability, and the alleged victims would drop their claims against Weinstein and other executives.