Nearly three years after the Weinstein Company was declared bankrupt, a judge on Monday confirmed a liquidation plan that provides a $ 17.1 million fund for Harvey Weinstein’s sexual misdemeanors.
The plan provides $ 9.7 million to former executives and directors of the Weinstein Company, allowing them to pay a portion of their legal bills over the past several years. Directors and executives – including Weinstein’s brother, Bob, as well as James Dolan, Tarak Ben Ammar, and Lance Mairov – also received releases that deprive them of any potential obligation to enable Winstein’s conduct.
US Bankruptcy Judge Mary Walrath approved the plan after a hearing in Delaware, saying that without a settlement, Weinstein’s accusers would receive “minimal, if any, recovery”.
The liquidation plan wraps up a controversial and long-running legal battle over the remains of Weinstein’s independent studio. The company collapsed in late 2017 after the revelations of dozens of allegations of rape, sexual harassment, harassment and other misconduct.
Many insurance carriers will pay a total of $ 35.2 million to resolve all remaining claims, including from trade creditors at Weinstein Company.
The $ 17,000,000 fund will be split among more than 50 claimants, with the most serious charges resulting in $ 500,000 or more paid. Weinstein’s compromise was reached for the vote of the accused, with 39 voting in favor and eight opposed.
Ruby Liu, an attorney representing the lawyers, argued Monday that the settlement fund is “meager” and the deal deprives her clients of the opportunity to pursue Bob Weinstein and other directors in court.
“There are more than monetary considerations that my customers are asking for,” she said. “They are demanding a finding from a jury that holds all responsible parties accountable. It’s not just Harvey Weinstein.”
Paul Zumbrow, a lawyer representing the Weinstein Company’s assets, argued that the deal was the best for those making the deal. Without issuing directors and officers, insurance companies are not prepared to pay.
Many attorneys supporting the plan argued that it is better to “close” the majority of claimants than to force all claimants to face litigation for an uncertain outcome.
“This is the best we’re going to do,” said Debra Grassgreen, a lawyer for the unsecured creditors committee.
An earlier version of the settlement would have provided a $ 24.3 million payment to the plaintiffs, including women who were alleged to have been abused in the “Miramax” era that preceded 2005. But Judge Alvin Hellerstein rejected the agreement, stating that a class action suit was involved. Miramex-era convicts were not viable. The settlement was later modified to exclude Miramax, Disney and their insurers.
A portion of the defense cost payment was initially placed to protect Harvey Weinstein. That fund was removed from the scheme. Civil claimants still have the option to pursue Harvey Weinstein in civil court, although most lawyers believe they have some assets that can be recovered.
Weinstein’s Co. The bulk of its assets were sold in 2018 to Dallas-based private equity firm, Lantern Capital, for $ 289 million. Those funds were used to pay the company’s secured creditors.