Judge Approves $17 Million Settlement Deal For Harvey Weinstein Victims
A bankruptcy judge approved Weinstein Company’s liquidation plan that allocated $17 million to Harvey Weinstein‘s sexual assault and harassment victims. This plan allocates $35.2 million total to creditors, with $17,064,525.30 going towards a “Sexual Misconduct Claims Fund.”
$8.4 million will go to a liquidation trust for resolving non-sexual misconduct claims, and $9.7 million will be used to reimburse defense costs for former company officials other than Weinstein.
Attorney Paul Zumbro confirmed to CNN that Judge Mary Walrath approved the settlement plan.
“(We are) pleased with Judge Walrath’s ruling, and particularly so given there is now a mechanism that allows victims to receive compensation without having to endure the hardships and uncertainties of litigation,” said Zumbro.
The Weinstein Company Holdings LLC and affiliate companies filed for Chapter 11 bankruptcy in March 2018. The company was sold to Lantern Capital, a private equity firm, for $310 million. At that time, the company said it would release victims of and witnesses to Weinstein’s alleged harassment and assault from any non-disclosure agreements.
Judge Walrath approved this plan at a hearing on Monday after overruling objections from an attorney representing four of the women who accused Weinstein of sexual assault and harassment.
This settlement is $11.5 million less than a previously proposed plan. The approved $17 million is down from $25.7 million proposed in the previous plan.
Holders of sexual assault claims will receive 100% of the value of their claims if they release Weinstein from all legal claims. Those who do not agree to these terms will only receive 25% of the value of their claims.
The sexual misconduct claims will be evaluated on a 100 point system. Maximum 60 points will be given for physical misconduct, up to 30 points for nonphysical sexual misconduct and up to 10 points for claims of emotional or economic stress. The claims examiner will assign points based on age, corroborating evidence, prior or pending litigation, and applicable statutes of limitation.
“The point award system pits women against women competing for a limited recovery from the pathetically meager sexual misconduct claims fund,” wrote the attorneys of women objecting to the plan in a court filing. “There is nothing fair about a plan that requires a rape victim to release her rapist in order to receive a full reward from the sexual misconduct fund. There is nothing fair in re-victimizing her financially by reducing her award by 75% if she does not agree to release her rapist.”
Weinstein was sentenced to 23 years in prison in March 2020. He faces six more sexual assault charges in Los Angeles.