DOVER, Del. (AP) – A Delaware judge approved a revised bankruptcy plan from Weinstein Co. that offers about $ 35 million to creditors, with about half that amount going to women who have accused cinema tycoon Harvey Weinstein’s sexual misconduct.
The judge approved the plan after a hearing on Monday, dismissing the objections of lawyers representing producer Alexandra Canosa and actresses Wedil David and Dominique Huett, who accused Weinstein of sexual assault, and a former Weinstein Co. employee. who claims to have been subjected to hostile environment work.
The deal is worth $ 11.5 million less than the previous plan, which was canceled after a New York federal judge refused to approve a proposed $ 19 million deal between Weinstein and some of his accusers. The settlement of this alleged class action was a fundamental component of the initial bankruptcy plan.
Approximately half of the approved settlement, about $ 17 million, is allocated to a single sexual misconduct fund, down from about $ 25.7 million allocated to three separate categories of sexual misconduct claims under the plan previous. Another $ 8.4 million will go to a settlement fund to resolve claims of non-sexual misconduct, and $ 9.7 million will be used to reimburse defense costs for former company employees other than Weinstein. The plan also exempts these employees from liability for unlawful actions related to Weinstein’s conduct.
Holders of sexual misconduct claims will receive 100% of the settled value of their claims if they agree to exempt Weinstein from all legal claims. An applicant who chooses not to release Weinstein, but maintains the option to sue him in another court, will receive 25% of the value of his bankruptcy filing.
According to the case file, 55 sexual misconduct actions were filed in the bankruptcy process, with 39 holders of such actions voting in favor of the plan and eight voting against. Among the unsecured claims holders in general, 81, or 96%, voted in favor of the plan.
Allegations of sexual misconduct will be assessed on a points system that allows a maximum of 100 points. This includes up to 60 points for allegations of physical sexual misconduct, a maximum of 30 points for allegations of non-physical sexual misconduct and up to 10 points for allegations of emotional distress and economic harm. A claims examiner will have the authority to adjust the total points up or down based on factors such as age, corroborating evidence, previous or pending litigation and applicable statutes of limitation.
Lawyers for women who oppose the plan described it in a lawsuit last month as unfair and coercive.
“The points reward system pits women against women who compete for a limited recovery from the pathetically scarce background of claims of sexual misconduct,” they wrote.
“There is nothing fair about a plan that requires a rape victim to release her rapist to receive a full reward from the sexual misconduct fund,” they added. “There is nothing fair about revicting her financially, reducing her premium by 75%, if she does not agree to release her rapist.”
Weinstein is serving a 23-year prison sentence after being convicted by a New York jury for the rape and sexual assault of two women.
Weinstein was also charged in California with rape, forced oral copulation, restricted sexual assault and sexual penetration through the use of force. These allegations involve five women and result from events in Los Angeles and Beverly Hills from 2004 to 2013.