A couple of weeks after negotiations to sell the company fell apart, scandal-plagued movie and TV studio The Weinstein Co. has filed for bankruptcy protection. The company has stated that it has a “stalking horse” buyout agreement in hand from an affiliate of Lantern Capital Partners.
Besides filing for bankruptcy, the company announced it was freeing victims of co-founder Harvey Weinstein’s alleged sexual misconduct from any non-disclosure agreements they had signed, allowing them to speak out publicly now. This was something New York State Attorney General Eric Schneiderman, who had filed a lawsuit against The Weinstein Co. on behalf of its employees, had been seeking.
Now that the company has filed for bankruptcy, some lawsuits by Weinstein’s accusers will be stopped and additional legal claims cannot be made. Schneiderman’s lawsuit, however, won’t be suspended as it was done by a law enforcement agency.
The studio, which was dealing with some financial difficulty before the accusations against Weinstein began to pour in, looks to be the first major company to be forced into bankruptcy during the #MeToo movement due to allegations of sexual misconduct.
[image via screengrab]
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