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The $35.2 million proposal filed on Tuesday in
the U.S. Bankruptcy Court in Delaware was financed by insurers
and includes $17 million to settle sexual misconduct claims in
various courts as well as a lawsuit by New York's attorney
general.
Weinstein, 68, is serving a 23-year prison term in New York
state following his Feb. 24 conviction for sexually assaulting a
former production assistant and raping an actress. He has
appealed the conviction.
The latest plan provides less to accusers than the $18.9 million
in the prior plan, which was rejected in July by U.S. District
Judge Alvin Hellerstein in Manhattan, who is overseeing a class
action against Weinstein.
The remaining funds will settle business debts and defense costs
for former representatives of The Weinstein Co. It removed legal
fees for Weinstein, a part of the prior plan that Hellerstein
called "obnoxious."
Attorney Paul Zumbro for The Weinstein Co told Judge Mary
Walrath in Wilmington at Wednesday's hearing that the settlement
pool was reduced because it no longer resolves claims that
pre-date The Weinstein Co.
The plan provides accusers a proposed payment; if they accept,
it settles their claim against Weinstein. Alternatively,
accusers can accept 25% of the proposed payment and continue to
pursue Weinstein in the courts.
Scott Leonhardt, an attorney representing two accusers, called
the plan "fundamentally deficient" and said his clients opposed
it.
Walrath said the plan appeared to prevent an accuser who opted
to pursue Weinstein in court and who won a judgment from
collecting against Weinstein's insurers.
An attorney for The Weinstein Co said the plan would be
clarified and did not shield insurers in that situation.
(Reporting by Tom Hals in Wilmington, Delaware)
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