N.Y. AG Lawsuit Dooms $500M Sale Of Weinstein Firm

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ALBANY — A $500 million deal to promote disgraced former Hollywood mogul Harvey Weinstein’s previous firm collapsed Sunday night time after state Legal professional Common Eric Schneiderman’s workplace sued the fallen movie producer and his firm.

In accordance with The Wall Avenue Journal, a bunch led by businesswoman Maria Contreras-Candy was “about to consummate” the sale, till the lawsuit lowered the curtain on the acquisition.

Schneiderman didn’t search a restraining order halting the sale, however the lawsuit was sufficient to persuade Contreras-Candy and her crew to again out.

An settlement was set to be formalized Sunday to promote the Weinstein Co. to the group of buyers led by Contreras-Candy, former President Barack Obama’s head of the Small Enterprise Administration. Among the many buyers was Ron Burkle’s Yucaipa Firms.

Schneiderman had raised issues about numerous parts of the deal, and on Sunday filed a civil rights lawsuit in opposition to the Weinstein Co., Harvey Weinstein, and his brother, Robert Weinstein.

The Every day Information reported Saturday night time that Schneiderman’s workplace raised numerous issues in regards to the take care of the events, together with the anticipated naming of Weinstein Co. Chief Working Officer David Glasser as the brand new group’s CEO.

Schneiderman’s workplace decided by means of interviews and paperwork throughout its ongoing four-month probe into the Weinstein Co. that Glasser was an “enabler” of Weinstein’s unhealthy conduct, a supply instructed The Information.

“We expressed to them how necessary it’s that any deal adequately compensate victims, defend workers and never reward those that enabled or perpetuated this egregious sexual misconduct,” mentioned Schneiderman spokeswoman Amy Spitalnick.

“We have been shocked to study,” she mentioned, “they weren’t critical about discussing any of these points and even sharing probably the most primary details about how they deliberate to deal with them.”

However a second supply near the deal mentioned the lawyer basic’s workplace needed oversight into who runs the corporate.

The supply additionally mentioned the sale would have been good for Weinstein’s victims since Contreras-Candy has proposed a $50 million victims compensation fund.

However Schneiderman spokesman Eric Soufer mentioned his workplace’s overview of the proposed deal didn’t embody such a fund.

The lawsuit mentioned the sale “might go away survivors of Respondents’ illegal conduct with out satisfactory redress (and) allow perpetrators or enablers of misconduct to acquire unwarranted monetary advantages.” 

 
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