Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. bankruptcy judge okays Weinstein Co plan paying $17 million for sex abuse claims

Published 01/25/2021, 07:09 PM
Updated 01/25/2021, 07:35 PM
© Reuters. FILE PHOTO: Harvey Weinstein appears for a virtual hearing

© Reuters. FILE PHOTO: Harvey Weinstein appears for a virtual hearing

By Maria Chutchian

(Reuters) - A U.S. Bankruptcy Court judge on Monday approved The Weinstein Co’s liquidation plan, which sets aside $17 million for women who accused co-founder Harvey Weinstein of sexual misconduct.

Judge Mary Walrath in Wilmington, Delaware announced her ruling at the conclusion of a remote hearing. She overruled an objection from a handful of women who are looking to pursue appeals of their claims outside of bankruptcy court.

She noted that 83% of sexual misconduct claimants in the bankruptcy “have expressed very loudly that they want closure through acceptance of this plan, that they do not seek to have to go through any further litigation in order to receive some recovery, some possible recompense ... although it’s clear that money will never give them that.”

The Weinstein Co sold its assets to Lantern Entertainment, which later became Spyglass Media Group, for $289 million after it filed for bankruptcy in 2018. The bankruptcy was precipitated by widespread claims of sexual misconduct against company founder Harvey Weinstein, who is serving a 23-year prison term after being convicted of sexually assaulting a former production assistant and raping an actress.

Insurers have contributed $35 million under the plan, so holders of sexual misconduct claims will get almost half of that. The Weinstein Co’s lawyers say the women who filed the claims could each see six-figure recoveries.

They will have the option to forgo most of their payout under the plan if they want to continue pursuing their claims against Harvey Weinstein and former officers and directors of the company.

A group of women with sexual abuse claims argued that the choice between a full payout and continuing to pursue their claims was unfair. But lawyers for the company and an unsecured creditors’ committee, which includes women who filed sexual misconduct claims, say those releases for former officers and directors are a key component of the plan.

A lawyer for the company, Paul Zumbro of Cravath Swaine & Moore, said during the hearing that the plan is "remarkable" and a "favorable closure of this really ugly story."

The case is In re The Weinstein Company Holdings LLC, U.S. Bankruptcy Court, District of Delaware, No. 18-10601.

For The Weinstein Company: Paul Zumbro, Lauren Moskowitz and Salah Hawkins (NASDAQ:HWKN) of Cravath Swaine & Moore and Mark Collins, Russell Silberglied, Paul Heath, Zachary Shapiro, Brett Haywood and David Queroli of Richards Layton & Finger

For the committee: James Stang, Robert Feinstein, Debra Grassgreen, Bradford Sandler and Colin Robinson of Pachulski Stang Ziehl & Jones

© Reuters. FILE PHOTO: Harvey Weinstein departs New York Criminal Court in New York

For the objecting claimants: Zhao (Ruby) Liu and Frederick Rosner of The Rosner Law Group, Kevin Mintzer of The Law Office of Kevin Mintzer, Douglas Wigdor and Bryan Arbeit of Wigdor LLP and Thomas Giuffra of Rheingold Giuffra Ruffo & Plotkin.

Latest comments

Weistein is using Black Cube Mossad op
whatever
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.