The Weinstein Company has officially been sold to an investment group.
The group, led by former head of the Small Business Administration Maria Contreras-Sweet, will take over movie studio’s assets and some of the cash paid by Contreras-Sweet group will go to set up a fund to compensate victims of Weinstein’s alleged sexually predatory behavior. The NY Post reported.
“Our team is pleased to announce that we have taken an important step and have reached an agreement to purchase assets from The Weinstein Company in order to launch a new company… “We are grateful to the New York State Attorney General’s office for their efforts in helping us reach an agreement and we are grateful to our investors who have believed in this process and in the compelling value of a female-led company, a statement from the investment group reads.
This ends the battle between The Weinstein Company, the new owners and state Attorney General Eric Schneiderman over a compensation fund for victims of workplace misconduct.
Prolific movie producer Harvey Weinstein resigned from the company after the now infamous sexual harassment stories became common knowledge, but still insisted the multitude of claims of from Hollywood stars to lowly staffers were unfounded.
The new deal increases the amount of money allotted victim’s compensation fund from $50 million to $90 million sources said.
The troubled company was negotiating with both the new owners & Attorney General Schneiderman over the amount to be contributed towards the compensation fund for victims of workplace misconduct.
“As I made clear from the start, our office will support a deal that ensures victims will be adequately compensated, employees will be protected moving forward, and those who were responsible for misconduct at TWC will not be unjustly rewarded,” Schneiderman said in a statement.
New York state Attorney General Eric Schneiderman filed a suit in February against Harvey Weinstein, his brother Bob Weinstein and the film production company over which they once lorded seeking “to remedy a years-long gender-based hostile work environment, a pattern of quid pro quo sexual harassment, and routine misuse of corporate resources for unlawful ends”. This still remains in place, according to the NY Post.
“We will work with the parties in the weeks ahead to ensure that the parties honor and memorialize these commitments prior to closing. Our lawsuit remains active and investigation remains ongoing at this time”, Schniederman concluded in the statement.
By Murray Goldstein