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Insurance-financed Weinstein settlement opposes court proceedings



(Reuters) – Lawyers for Harvey Weinstein's bankrupt film studio on Wednesday presented a revised proposal to resolve sexual offenses against the disgraced former producer, but a lawyer for prosecutors promised to oppose the plan.

The proposed $ 35.2 million proposal on Tuesday in the U.S. Bankruptcy Court in Delaware was funded by insurance companies and includes $ 17 million to settle sexual offenses in various courts as well as a trial by New York's attorney.

The former producer is serving 23 years in prison. in the state of New York after his conviction on February 24 for sexually abusing a former production assistant and raping an actress. He has appealed the conviction.

The latest plan gives less than $ 1

8.9 million to prosecutors in the previous plan, which was rejected in July by U.S. District Judge Alvin Hellerstein in Manhattan, who is overseeing a class action lawsuit against Mr. Weinstein.

The remaining funds will settle business liabilities and defense costs for former representatives of The Weinstein Co. It removed legal fees for Mr. Weinstein, part of an earlier plan that Judge Hellerstein called "disgusting."

Attorney Paul Zumbro on behalf of The Weinstein Co. told Judge Mary Walrath in Wilmington at Wednesday's hearing that the settlement pool was reduced because it no longer resolves allegations that The Weinstein Co. advance

The plan provides prosecutors with a proposed payment; if they accept, it resolves their claim against Mr. Weinstein. Alternatively, prosecutors can accept 25% of the proposed payment and continue to prosecute him in court.

Scott Leonhardt, a lawyer representing two prosecutors, called the plan "fundamentally flawed" and said his clients opposed it.

Judge Walrath said the plan seemed to prevent a prosecutor who chose to prosecute Mr. Weinstein in court and who won a verdict from collecting against his insurers.

A lawyer for The Weinstein Co. said the plan would be clarified and did not protect insurers. in that situation.


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