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 By Jessica DiNapoli and Michael Erman
NEW YORK (Reuters) - New York's
attorney general sued the Weinstein Company and Harvey Weinstein
on Sunday alleging years of sexual harassment and misconduct by
the movie producer, in a move that could jeopardize talks on a
potential sale of the studio.
Weinstein, co-founder of the Miramax studio, was one of
Hollywood's most influential men before more than 70 women
accused him of sexual misconduct, including rape. He denies
having non-consensual sex with anyone, and his lawyer said many
of the latest allegations would turn out to be unmerited.
The civil suit alleges that the company's executives and board
repeatedly failed to protect employees from Weinstein, Attorney
General Eric Schneiderman said in a statement. The suit also
names Weinstein's brother Bob, who co-founded the company.
The studio has been in talks to sell itself to a group of
investors led by former Obama administration official Maria
Contreras-Sweet, but Schneiderman's lawsuit has put deal
negotiations on hold, according to people familiar with the
matter.
Schneiderman said he sued the company on Sunday in part because
of reports that a sale of the studio could be imminent.
"Any sale of The Weinstein Company must ensure that victims will
be compensated, employees will be protected going forward, and
that neither perpetrators nor enablers will be unjustly
enriched," Schneiderman said.
The state is seeking an unspecified amount of restitution and
damages, plus penalties, for harm to victims.
The lawsuit alleges that Weinstein, 65, sexually harassed
employees and abused women for years. It accuses Weinstein
Company executives, including his brother and co-CEO Bob, of
failing to act despite repeatedly being presented with credible
evidence of Weinstein's sexual harassment and misconduct.
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In a statement, Weinstein's attorney Ben Brafman said a fair
investigation by Schneiderman would prove that many of the
allegations against his client were without merit.
"While Mr. Weinstein's behavior was not without fault, there
certainly was no criminality, and at the end of the inquiry it will
be clear that Harvey Weinstein promoted more women to key executive
positions than any other industry leader and there was zero
discrimination at either Miramax or TWC," Brafman said.
"If the purpose of the inquiry is to encourage reform throughout the
film industry, Mr. Weinstein will embrace the investigation. If the
purpose however is to scapegoat Mr. Weinstein, he will vigorously
defend himself," Brafman said.
Schneiderman said he used his subpoena power in an attempt to get
around Non-Disclosure Agreements that Weinstein and the company
signed with employees and others in what the attorney general
described as an attempt to shield them from scrutiny.
The New York Times first reported in October on multiple allegations
of sexual misconduct by Weinstein. Reuters has not been able to
independently confirm the allegations.
Since then, similar allegations have been leveled against many
powerful men in business, politics and entertainment, and the #MeToo
movement has emerged of victims using social media to share their
stories of harassment and abuse.
(Reporting by Jessica DiNapoli and Michael Erman; Additional
reporting by Karen Freifeld; Editing by Daniel Wallis)
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