A new settlement proposal to close out the bankruptcy of The Weinstein Company includes a reduction in payouts to accusers compared to a previous plan.
The revised $35.2 million proposal designed to close out TWC’s financial obligations includes a $17 million victims’ fund — a decrease from a settlement proposal filed and rejected in July, which included an $18.9 million victims’ fund that would allow women from both the TWC and Miramax era to make claims, as well as a $5.4 million settlement for 14 individual victims as part of the liquidation of TWC.
The Tuesday filing, reviewed by TheWrap, said that the $35,214,882.30 proposed settlement, to be paid out by insurance companies, would be divided as such: “(i) the aggregate Cash amount of the Sexual Misconduct Claims Fund ($17,064,525.30); (ii) the aggregate Cash amount to the Estates in the amount of the Liquidation Trust Settlement Payment ($8,407,305.00); (iii) the aggregate Cash amount of the Former Representatives Defense Costs ($9,743,052.00).”
Beth Fegan, a lead attorney for the settlement, said that the reduction in the victims’ fund is because this revised proposal focuses solely on TWC’s bankruptcy.
“Any reduction is due to the fact that the settlement does not include claims for the Miramax-era (pre-June 30, 2005) survivors,” Fegan wrote in an email to TheWrap. “This plan has a key term: choice. Under this plan, women from The Weinstein-Company era have an individual choice to participate in the revised deal or continue to pursue their claims against Harvey Weinstein in court. Every woman will have the right to make a decision for herself, and the plan will provide a safe and confidential claims process for those survivors who are interested in resolution.”
But lawyers representing Wedil David, Dominique Huett, Kaja Sokola, Rowena Chiu, Zelda Perkins and Tarale Wulff, who have previously been outspoken against the proposed settlement, called the revised proposal “more offensive” than the one rejected by U.S. District Judge Alvin Hellerstein in July and pointed to the other payments for attorney costs and to the estates.
“The latest Weinstein settlement plan is more offensive than the version that was rejected by Judge Hellerstein. Under the new plan, which is approximately $10 million less than the plan rejected by Judge Hellerstein, more than half of the settlement funds are paid to Robert Weinstein and the other ultra-wealthy former directors of The Weinstein Company, as well as TWC creditors including huge media companies and famous actors,” attorneys Douglas Wigdor and Kevin Mintzner said in a statement. “Less than half of the settlement funds are designated for sexual assault survivors, and that amount will substantially dwindle to pay the costs of administering the settlement. The awards to survivors, therefore, will likely be miniscule.”
J. Clara Chan and Pamela Chelin contributed to this report.
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