NY Attorney General sues Weinstein & Co

New York Attorney General Eric T Schneiderman has filed a lawsuit against disgraced movie mogul Harvey Weinstein, his brother Bob, and their production house on their alleged failure to uphold the state and city laws against gender discrimination and sexual harassment.

The lawsuit comes four months after the producer was accused of sexual harassment, including rape, over a span of three decades, by multiple women such as actors Ashley Judd, Angelina Jolie, Gwyneth Paltrow, Lea Seydoux, Salma Hayek and Uma Thurman, among others.

The case has been filed electronically in Manhattan's State Supreme Court and the timing is expected to cause a delay in the sale of The Weinstein Company (TWC), which is facing bankruptcy, the New York Times reported. Any sale of the Weinstein Company must ensure that victims will be compensated, employees will be protected going forward, and that neither perpetrators nor enablers will be unjustly enriched, Schneiderman said in a news release.

The deal was said to be finalised on Sunday. The company was on the verge of selling itself to an investor group for approximately USD 275 million, plus the assumption of USD 225 million in debt, according to two people in the know of the deal who spoke on condition of anonymity.

The investor group, led by Maria Contreras-Sweet, best known for handling the Small Business Administration under former U S President Barack Obama, has publicly said it would create a multi-million dollar settlement fund for women who have accused Weinstein of abuse. TWC has been trying to salvage itself since Weinstein's sexual harassment scandal broke out in October last year. Los Angeles Police Department and New York Police Department have already launched probes against Weinstein.