AG Urges Stakeholders to Include Bid Enhancements to Compensate Victims, Protect Employees, and Not Reward Wrongdoers
New York Attorney General Eric T. Schneiderman released an open letter to the various participants in the Weinstein Company bankruptcy cases, urging the stakeholders to use the sale process as an opportunity to ensure that survivors of past misconduct and current employees are protected. This open letter follows prior efforts by the Attorney General’s office to advance victim interests before and during the bankruptcy process.
“Our requests of each of the stakeholders are straightforward,” Attorney General Schneiderman wrote. “Bidders should propose bid enhancements that set aside financial resources to compensate and provide support services for injured employees and industry talent, both of whom are essential to the company’s future success. Bid enhancements also should include nonmonetary terms that protect future employees and contractors and avoid rewarding wrongdoers.”
In February, Attorney General Schneiderman filed a civil rights lawsuit against TWC, Harvey Weinstein, and Robert Weinstein, detailing a long pattern of sexual misconduct and repeated violations of New York law.
Since filing suit, Attorney General Schneiderman has sought to ensure that victims would be compensated, employees would be protected moving forward, and the perpetrators and enablers of the misconduct would not be unjustly enriched. As the letter notes, in March, Attorney General Schneiderman received express commitments from parties involved in a potential non-bankruptcy sale of TWC that those conditions would be addressed. While that purchase was ultimately not consummated for unrelated reasons, the Attorney General’s office has continued to work to advance those interests since the bankruptcy filing – engaging in the process in order to advocate for victims, including through victim representation on the Unsecured Creditors’ Committee.
In March, TWC agreed to release victims of and witnesses to sexual misconduct from non-disclosure agreements, a step the Attorney General’s office had long sought throughout his investigation and litigation. The Attorney General encourages anyone who would like to share their story as part of his investigation to contact his office at 212-416-8250.
Attorney General Schneiderman’s lawsuit remains active and investigation remains ongoing.