Disgraced Hollywood producer Harvey Weinstein has reportedly reached a tentative $44 million settlement deal to compensate the women accusing him of rape, sexual assault, and other misconduct. A portion of the money would also repay creditors and employees of the bankrupt Weinstein Co.
According to The Wall Street Journal, the deal is the result of months of mediation with the goal of reaching a global settlement for all the civil suits against Weinstein and his former company. While the deal has yet to be finalized, sources tell the WSJ that $30 million has been earmarked for “plaintiffs,” including alleged victims of Weinstein, former employees, and creditors. That sum would also go towards paying any plaintiffs’ lawyers fees, while the other $14 million would pay the legal fees for associates of Weinstein’s, including his former board members, who have also been named as defendants in a range of lawsuits.
If the agreement is finalized, it would resolve a pending civil-rights case in New York. That case accuses Weinstein Co.’s executives and board of creating a hostile workplace due to allowing Weinstein’s behavior to go unchecked. The deal would not, however, impact the criminal rape and sexual assault charges Weinstein’s was indicted on in NYC last year. He has already pleaded not guilty, and the trial is set to begin in September. He faces up to 25 years in prison.
Unfortunately for those looking at the settlement as a sense of justice, Weinstein himself won’t be fronting the $44 million bill. Instead, insurance companies who had policies with the now-defunct Weinstein Co. will be responsible for the payouts. Lantern Capital Partners currently owns the Weinstein Co. properties, having purchased the company out of bankruptcy last year for $289 million, including debt.
Advisors overseeing the Weinstein Co.’s bankruptcy proceedings must approve the deal before it moves forward. Once it does, a bankruptcy judge will make a decision on whether the settlement will go through on June 4th.