After months of wrangling, infighting and uncertainty, a controversial $45 million settlement was reached between Harvey Weinstein, his former film studio's board and several women who have accused the disgraced movie mogul of sexual misconduct, according to attorneys involved in the negotiations.
A U.S. Bankruptcy Court judge in Delaware still must formally approve a deal that would bring an end to one chapter of the scandal that rocked the entertainment industry, decimated the Weinstein Co. and propelled #MeToo into a global movement.
The tentative settlement does not, however, resolve a separate criminal case against Weinstein in New York over multiple accusations of sexual assault. That criminal case will go to trial next month.
Under terms of the deal, about $32 million will be allocated to the accusers, unsecured creditors and former Weinstein Co. employees; and about $12.5 million will be earmarked to pay legal fees of the studio's directors and officers, according to a person familiar with the matter but not authorized to comment.
Insurance companies, potentially including Chubb Ltd. and AIG, are expected to make the payment on behalf of Weinstein Co. The parties are expected to sign off on the settlement.
The New York-based Weinstein Co. filed for bankruptcy in March 2018 and later sold off most of its assets to private equity firm Lantern Capital Partners for $289 million.
A tentative settlement had been reached during a bankruptcy court hearing in Wilmington, Del. in May, but it faced a number of hurdles.
The announcement exposed months of behind-the-scenes infighting as negotiations were underway, characterized by disagreements that threatened to torpedo the deal at numerous junctures.
Attorneys for two of the accusers rejected the proposed settlement outright.
They held out, saying the proposed settlement offered inadequate compensation to the victims while enabling Weinstein and the directors of Weinstein Co. to evade accountability or liability.