The acquisition of the Weinstein Company, founded by Bob and Harvey Weinstein, is now in jeopardy after the New York Attorney General filed a lawsuit against the company and its two founders, according to Variety.
New York Attorney General Eric Schneiderman, in a news conference on Monday, raised objection to the $500 million deal stating that there is not enough funds to compensate the victims of sexual harassment in case of a civil litigation.
The investor group headed by Maria Contreras-Sweet have reportedly expressed their frustration after the lawsuit, terming the sale process “98% dead and on life support”.
Contreras-Sweet had reportedly wanted to revive the studio with a new name with a more female-led management team, considering it was run by Weinstein who has been accused by hundreds of women for sexual misconduct. Contreras-Sweet had also raised about 65 per cent of the funding for the deal through contacts in the venture capital arena and from prominent women in entertainment and philanthropy, the report added.
Meanwhile, Bob Weinstein has denied any sort of restriction on the deal. “That is a lie, totally untrue. In fact I vigorously supported Maria and Ron Burkle talking to the AG and being fully transparent,” he told Deadline on Sunday.
The New York Times stated that the deal states that the lawsuit might just make the victims of Harvey Weinstein appear as unsecured creditors. “Whether the victims’ fund is funded properly or not in this instance is almost beside the point — it still better for victims to have an opportunity to sue a well-capitalized company than a bankrupt one,” wrote Andrew Ross Sorkin.
Feature Image: CNN.com