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$17 mln allotted for Weinstein sex abuse claims

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Women who have accused Harvey Weinstein of sexual abuse are being offered a payout, through the bankruptcy of the Hollywood company he founded.

A U.S. bankruptcy court announced the ruling at the conclusion of a remote hearing.

Judge Mary Walrath approved the Weinstein Co's liquidation plan that will set aside $17 million for those who say they are his victims.

She overruled an objection from a handful of women who are looking to pursue appeals of their claims outside of bankruptcy court.

Walrath said 83% of sexual misconduct claimants in the bankruptcy want closure.

The Weinstein Co sold its assets to Lantern Entertainment, which later became Spyglass Media Group, for $289 million after it filed for bankruptcy in 2018.

The bankruptcy was precipitated by widespread claims of sexual misconduct against company founder Harvey Weinstein.

The film producer is serving a 23-year prison term after being convicted of sexually assaulting a former production assistant and raping an actress.

Insurers have contributed $35 million under the plan, so holders of sexual misconduct claims will get almost half of that.

The Weinstein Co's lawyers say the women who filed the claims could each see six-figure recoveries.

Under the plan they can forgo most of their payout if they want to continue pursuing their claims.

A group of women with sexual abuse claims argued that choice is unfair.

A lawyer for the company said during the hearing that the plan is a "favorable closure of this really ugly story."

Video Transcript

- I'm right back here, Harvey, if you don't mind.

- Women who have accused Harvey Weinstein of sexual abuse are being offered a payout through the bankruptcy of the Hollywood company he founded. A US bankruptcy court announced the ruling at the conclusion of a remote hearing. Judge Mary Walrath approved the Weinstein company's liquidation plan that will set aside $17 million for those who say they are his victims. She overruled an objection from a handful of women who are looking to pursue appeals of their claims outside of bankruptcy court. Walrath said 83% of sexual misconduct claimants in the bankruptcy want closure.

The Weinstein Company sold its assets to Lantern Entertainment, which later became Spyglass Media Group, for $289 million after it filed for bankruptcy in 2018. The bankruptcy was precipitated by widespread claims of sexual misconduct against company founder Harvey Weinstein. The film producer is serving a 22-year prison term after being convicted of sexually assaulting a former production assistant and raping an actress.

Insurers have contributed $35 million under the plan, so holders of sexual misconduct claims will get almost half of that. The Weinstein Company's lawyers said the women who filed the claims could see six-figure recoveries. Under the plan they can forgo most of their payout if they want to continue pursuing their claims. A group of women with sexual abuse claims argued that choice is unfair. A lawyer for the company said during the hearing that the plan is a favorable closure of this really ugly story.