unilad
Advert

Court Approves $17 Million Payout To Harvey Weinstein’s Accusers

by : Emily Brown on : 26 Jan 2021 08:28
Court Approves $17 Million Payout To Harvey Weinstein's AccusersPA Images

US Bankruptcy Judge Mary Walrath has approved a $17 million payout to more than 50 people who accused Harvey Weinstein of sexual misconduct. 

The payout is part of a liquidation plan confirmed after the Weinstein Co. declared bankruptcy in 2017, when dozens of allegations of rape, sexual assault, harassment and other misconduct were made against the film producer.

Advert

In the years since the collapse of Weinstein’s independent studio there has been a long-running legal fight over the remnants. The liquidation plan wraps up this battle, with Judge Walrath noting that without the settlement, Weinstein’s accusers would get ‘minimal, if any, recovery.’

Harvey WeinsteinPA

The payout will be split among the more than 50 claimants, with those who accused Weinstein of more serious offences receiving payouts of $500,000 or more.

A total of $35.2 million will be paid out by insurance carriers to resolve all the remaining claims, including those from the Weinstein Co.’s trade creditors.

Advert

The plan was approved following a hearing in Delaware, and also provides $9.7 million to the former officers and directors of the Weinstein Co.; money which will go some way towards paying their legal bills from the last several years.

The directors and officers, including Weinstein’s brother, Bob, James Dolan, Tarak Ben Ammar and Lance Maerov, also received releases that absolve them of any potential liability for enabling Weinstein’s conduct, NBC News reports.

Harvey WeinsteinPA Images

Weinstein’s accusers were able to vote on the settlement, with 39 in favour and eight opposed.

Advert

Lawyers who supported the plan expressed their opinion that it is better to give the majority of claimants ‘closure’ with the payout, rather than forcing all accusers to endure years of litigation for an uncertain outcome.

Debra Grassgreen, a lawyer for the unsecured creditors committee, said the payout is ‘the best’ claimants were going to receive, but Ruby Liu, who represents those who objected to the settlement, argued the payout is ‘meagre’ and prevents her clients the opportunity to pursue Bob Weinstein and other directors in court.

She commented:

There are more than monetary considerations that my clients are seeking. They are seeking a finding from a jury that holds all responsible parties accountable. That’s not just Harvey Weinstein.

Advert
Harvey WeinsteinPA

Paul Zumbro, an attorney representing the Weinstein Co. estate, pointed out that insurance companies would not have been willing to pay out if the directors and officers were not released. He went on to argue the deal was the best one the accusers could get.

Part of the liquidation plan was initially earmarked for Harvey Weinstein’s defense, though the funding has since been stripped out. The claimants can still pursue Weinstein in civil court, though most lawyers involved in the proceedings believe he has few assets that could be recovered.

If you have been affected by any of the issues in this article and wish to speak to someone in confidence, contact the Rape Crisis England and Wales helpline on 0808 802 9999 between 12pm–2.30pm and 7pm– 9.30pm every day. Alternatively, you can contact Victim Support free on 08 08 16 89 111 available 24/7, every day of the year, including Christmas.

Advert

Male Survivors Partnership is available to support adult male survivors of sexual abuse and rape. You can contact the organisation on their website or on their free helpline 0808 800 5005, open 9am–5pm Mondays, Wednesdays, Fridays; 8am–8pm Tuesdays and Thursdays; 10am–2pm Saturdays.

Most Read StoriesMost Read

News

University Students Rally To Kick Out Kyle Rittenhouse After Murder Acquittal

Emily Brown

Emily Brown first began delivering important news stories aged just 13, when she launched her career with a paper round. She graduated with a BA Hons in English Language in the Media from Lancaster University, and went on to become a freelance writer and blogger. Emily contributed to The Sunday Times Travel Magazine and Student Problems before becoming a journalist at UNILAD, where she works on breaking news as well as longer form features.

Topics: News, Harvey Weinstein, Now, Sexual Assault, Sexual Misconduct

Credits

NBC News
  1. NBC News

    Court approves $17 million payout to Harvey Weinstein's accusers