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Harvey Weinstein accusers reach $44M deal over alleged sexual misconduct

Attorneys representing claims against Harvey Weinstein reached a $44 million settlement to resolve civil lawsuits over the disgraced movie mogul's alleged sexual misconduct. CNN's Christine Romans has more.

Posted: May 24, 2019 10:50 AM
Updated: May 24, 2019 10:50 AM

Attorneys representing claims against Harvey Weinstein, his company and former associates have reached a $44 million settlement to resolve civil lawsuits over his alleged sexual misconduct.

The attorneys told a Delaware bankruptcy judge Thursday they have a deal that will be paid by insurance policies -- not the disgraced movie mogul.

It allocates about $14 million for legal fees to Weinstein associates who are named as defendants in the lawsuits. The remaining $30 million will go to alleged victims, creditors and former employees of the Weinstein Co., a source with direct knowledge of the settlement tells CNN.

"We now have an economic agreement in principle that's supported by the plaintiffs, the [New York Attorney General's office], the defendants and all the insurers, that if approved will provide significant compensation to victims, creditors of the estate, and allow the parties to avoid years of costly, time consuming, and, you know, uncertain litigation on all sides," Adam Harris, the attorney for Bob Weinstein, told Judge Mary Walrath of the US Bankruptcy Court in Wilmington.

Bob Weinstein is a co-founder of Weinstein Company and brother to Harvey Weinstein.

New York AG's office filed the civil lawsuit

The New York Attorney General's office filed a civil lawsuit last year, saying the Weinstein brothers and their company committed "egregious violations of New York's civil rights, human rights, and business laws."

The suit also alleges "employee-victim accounts of sexual harassment, intimidation and other misconduct," the attorney general's office said in a statement.

"I think this is positive for the victims involved and this helps them avoid the stress and trauma of full litigation," said Aaron Filler, a California-based attorney for actress Paz de la Huerta, who said Weinstein raped her in her apartment on two separate occasions in 2010.

"This is a measure of justice," he added.

Since the sale of the Weinstein Co. to Dallas-based private equity firm Lantern Capital last year, the Weinstein Co. has been engaged in several rounds of mediation in an attempt to resolve lawsuits against the company and its former board members.

Judge Walrath will determine whether or not to approve the settlement in a June 4 hearing.

Neither a spokesman for Harvey Weinstein nor the New York Attorney General's Office would comment on the matter when asked by CNN.

Last week, the Weinstein Co. requested the Delaware court to convert the company's current chapter 11 bankruptcy filing to a chapter 7 in order to liquidate its assets to resolve the civil litigation.

Settlement does not affect criminal case

The settlement has nothing to do with the criminal case.

Weinstein is accused of raping a woman in a New York hotel room in 2013 and forcibly performing oral sex on another woman at his Manhattan apartment in 2006.

He faces two counts of predatory sexual assault, one count of criminal sexual act in the first degree, and one count each of first-degree rape and third-degree rape. He has pleaded not guilty to all charges and vigorously denied all of the allegations of rape.

While his charges relate to the two women, more than 80 others have publicly accused him of wrongdoing ranging from unwanted advances to rape.

His trial is set to begin on September 9.

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