Weinstein Company Files for Bankruptcy, Voids Non-Disclosure Agreements

Adjust Comment Print

Lantern Capital will have to compete with other potential buyers in a court-supervised auction. But when the deal seemed like it had been finalized, the investor group suddenly pulled out after it "uncovered new information about previous undisclosed liabilities" with the Weinstein Company.

More than 80 women have come forward in the last five months to accuse Weinstein of a decades-long pattern of sexual harassment and assault, but a provision of the bankruptcy filings in DE could clear the way for yet more allegations. The move was advocated for by the New York State Attorney General, who is investigating wrongdoing at T.W.C.; these are of course the NDAs that Weinstein manipulated to extremely restrictive degrees to prevent those closest to him from coming forward about his behavior.

Employees who may have experienced sexual harassment and other forms of workplace abuse at the Weinstein Company will have a chance to speak out now.

"It is an understatement to say that the last six months have been trying for the company", Chief Restructuring Officer Robert Del Genio said in court papers.

"Your voices have inspired a movement for change across the country and around the world", the company added.

The announcement has no bearing on Schneiderman's lawsuit against The Weinstein Company, Bob Weinstein, and Harvey Weinstein.

The Weinstein Company's bankruptcy will halt victim's lawsuits against the company and any sexual misconduct claims would likely only be compensated after secured creditors are paid in full.

Harvey Weinstein's brother, and chairman Robert Weinstein said the board was looking for sale that would preserve as many jobs as possible and pursue "justice for any victims".

More than 70 women have leveled allegations against Weinstein, for varying degrees of harassment, assault and, in some cases, rape. Weinstein has sought treatment after the allegations were made public last October, but he has consistently denied all allegations of "non-consensual sex".

Weinstein, who is now a Hollywood pariah, has an array of legal problems that are separate from the bankruptcy case. New criminal investigations have been opened in NY and Los Angeles.

The Weinstein Company has filed for bankruptcy, and ended all non-disclosure agreements in the process.

He sold the rights to Paddington Bear to Warner Bros. but was soon accused of sexual misconduct himself.

The filing estimates the Weinstein Co. businesses are valued between $500 million and $1 billion. Following the alleged assault, she received a $100,000 payout, and Weinstein's lawyers persuaded her to sign a million-dollar nondisclosure agreement; however, she refused, The New York Times reported.