The Weinstein Company filed for Chapter 11 bankruptcy, several months after the studio’s co-founder, Harvey Weinstein, had been accused of sexual assault by multiple women. This decision was first announced on February 25, after talks of a potential acquisition by a group of investors led by Maria Contreras- Sweet fell through.
The once highly successful film company also said that it would release any survivors of alleged sexual misconduct from any non-disclosure deals that prevented them from speaking out. In addition, they also struck a deal with a private equity firm, which will purchase its assets if the deal is approved in court.
“While he had hoped to reach a sale out of court, the board is pleased to have a plan for maximizing the value of its assets, preserving as many jobs as possible and pursuing justice for any victims,” said company chairman, Bob Weinstein.
The Weinstein Company also called the NDA cancellation an “important step toward justice” for the victims who had been silenced by Harvey Weinstein. In addition, they hope that the removal of the non-disclosure agreements will encourage people to come forward with their stories if they wish to do so.
Earlier last month, New York Attorney General, Eric Schneiderman, filed a civil-rights lawsuit against the film company. The lawsuit alleges that the studio violated New York’s “civil rights, human rights, and business laws”. More so, Schneiderman has been in favor of lifting the NDAs for a long time, having issued a statement in response to the recent news. He called the NDA removal a “watershed moment” and hopes that this recent turn of events will empower those who have been “muzzled” to come out and share their experience.
Aside from the company’s turmoil, Harvey Weinstein himself is facing a series of individual civil suits, including one in which he is being sued for alleged sex trafficking.
Weinstein’s lawyers denied all allegations brought against the disgraced mogul.
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