Does a Lawsuit Now Help the Weinstein Victims?
In her original bid letter to the Weinstein Company board on Nov. 8, Ms. Contreras-Sweet specifically outlined a “litigation fund”
that she said would “help compensate victims who may not qualify for insurance settlements, but still deserve compensation.”
But Mr. Schneiderman said he didn’t consider that a victims’ fund because it could be used for other litigation costs.
“The deal we reviewed would have stripped The Weinstein Company of essentially all its productive assets, saddled it with millions in liabilities,
and forced victims to take their claims to a broke, judgment-proof, shell of a company,” a spokeswoman for Mr. Schneiderman said.
Mr. Schneiderman said all the right things about compensating the victims, protecting current employees
and assuring “that neither perpetrators nor enablers will be unjustly enriched.”
And the lawsuit was timed perfectly for maximum impact: just hours before the company was to be sold on Sunday to a group of investors led by Maria
Contreras-Sweet, who had said she planned to set aside at least $50 million for a victims’ fund and start a new female-led movie studio.
That is why I unequivocally support their deal.’’
She added, “If the Weinstein Company is allowed to slip into bankruptcy, which is what may happen due
to this lawsuit by the A. G., I have grave concerns there will not be any funds left for victims.’’
Ms. Allred knows that if the proposed sale went through, the company would be funded by a group of investors
that includes Ron Burkle, the billionaire investor and philanthropist.