“The only clear pathway to truly helping victims, many of whom I represent, is actually to allow This particular deal to proceed,” she wrote in an email. “I have worked with Maria’s team along with they are 100 percent committed to helping victims. that will is actually why I unequivocally support their deal.”
She added, “If the Weinstein Company is actually allowed to slip into bankruptcy, which is actually what may happen due to This particular lawsuit by the A.G., I have grave concerns there will not be any funds left for victims.”
Ms. Allred knows that will if the proposed sale went through, the company would certainly be funded by a group of investors that will includes Ron Burkle, the billionaire investor along with philanthropist. along with if Ms. Allred decided to sue the company, her clients have a better chance of being paid than if the company remains independent. (She also takes a hefty fee — usually a third of proceeds — so she has personal incentive to succeed as well.)
Mr. Schneiderman made clear during a news conference broadcast on YouTube on Monday that will he intended to scuttle the deal. He said he was unhappy that will the Weinstein Company still had much of the same management team — run by men, not women — along with that will he wanted an “independent monitor” for the victims’ fund.
In her original bid letter to the Weinstein Company board on Nov. 8, Ms. Contreras-Sweet specifically outlined a “litigation fund” that will she said would certainly “help compensate victims who may not qualify for insurance settlements, nevertheless still deserve compensation.”
nevertheless Mr. Schneiderman said he didn’t consider that will a victims’ fund because that will could be used for various other litigation costs.
Whether the victims’ fund is actually funded properly or not in This particular instance is actually almost beside the point — that will still better for victims to have an opportunity to sue a well-capitalized company than a bankrupt one.
After I contacted Mr. Schneiderman’s office with these concerns, another explanation emerged.
“The deal we reviewed would certainly have stripped The Weinstein Company of essentially all its productive assets, saddled that will with millions in liabilities, along with forced victims to take their claims to a broke, judgment-proof, shell of a company,” a spokeswoman for Mr. Schneiderman said. “that will structure would certainly have all nevertheless guaranteed that will many victims would certainly get next to nothing — that will outcome is actually unacceptable to anyone who believes the victims of Harvey Weinstein’s harassment along with abuse deserve to be compensated.”
that will’s not to say that will Mr. Schneiderman should not have come forward with the results of his investigation. Nor should he have backed off via suing the Weinstein Company.
nevertheless a sale wouldn’t have precluded a lawsuit, along with he would certainly probably have had more leverage after a sale than before. He could have worked behind the scenes with the buyer — while holding over them the threat of a lawsuit. (He says the buyer refused to talk to him, though the various other side appears to dispute that will.)
Instead, he sued the company knowing that will that will would certainly make the deal harder to complete.
Of course, there is actually always a chance that will the deal will be resurrected, along with maybe Mr. Schneiderman will be able to claim victory along with say that will This particular was all part of a negotiation.
Still, when Mr. Schneiderman held his news conference on Monday, he spoke at a lectern with the words “Justice for Victims” written across that will. that will remains to be seen if he has made getting that will justice more difficult.