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Recently, a US federal judge rejected a $19 million proposed settlement for women who accused Harvey Weinstein of sexual harassment and abuse. Weinstein is a former mogul who was known for producing several popular films.
The judge deemed the fund “obnoxious” and stated that it was not fair to Weinstein’s victims. Many of the plaintiffs in the case also objected to the settlement, asserting that it was one-sided and not in favor of the people Weinstein sexually abused or harassed.
The case is classified as a mass tort since Weinstein’s actions negatively affected several people. Currently, Harvey Weinstein is serving a 23-year prison sentence in New York for his crimes.
More About the Settlement
The settlement decision was made by a judge in Delaware. The request for the settlement was made by four of the women who accused Weinstein of sexual misconduct; the women asked the judge to put Weinstein’s plan for bankruptcy on hold.
Recently, the judge issued an order that denied the emergency stay request while the women were challenging the plan’s approval in a Delaware federal district court. The lawyers for the four women responded by requesting that the district court delay the plan confirmation while the courts consider the women’s appeal. The bankruptcy court filing confirmed that the plan was “substantially consummated” recently.
Producer Alexandra Canosa, along with actresses Dominique Huett and Wedil David and a former Weinstein Co. employee who says she was in a hostile working environment, all challenged Weinstein’s financial plan.
Lawyers for these women state that the plan includes very broad liability releases for third parties like former Weinstein Co. directors and officers as well as insurance companies. The attorneys also argue that the plan has a provision that unfairly bans non-consenting claimants to pursue a claim.
The Goal of the Settlement
The purpose of the settlement was to resolve the class-action lawsuit that was filed on behalf of the women who claim that Weinstein sexually assaulted or harassed them. The funds would have also been used to settle a lawsuit that was filed against Weinstein, his production company, and his brother in 2018.
The $19 million settlement would have been divided between several of the claimants in the case. However, almost $12 million would have been designated for paying legal bills for Weinstein and his company.
The Hearing
The hearing was 20 minutes and took place over the phone. During the hearing, District Judge Alvin Hellerstein argued whether the claimants had a valid legal case and why the women were not pursuing individual sexual misconduct cases since the allegations of the women indicated different degrees of severity.
District Judge Hellerstein dismissed the deal by stating that the deal would give the same amount of money to women who had a casual yet uncomfortable encounter with Weinstein as those who were sexually abused or raped by Weinstein.
The attorneys of many of the women previously objected to the payout and called it unfair for several reasons and a “cruel hoax.” The lawyers asserted that if the courts accepted the proposal, Weinstein wouldn’t have to take accountability for his crimes.
Louisette Geiss, another one of Weinstein’s accusers, stated that the settlement would have helped to financially support survivors who lost their careers. However, Letitia James from the office of the New York Attorney General stated that the courts would review the settlement decision to determine the next course of action.
James added that the Attorney General’s office has been working nonstop to make sure that Weinstein’s victims receive the money they are rightfully owed.
Weinstein’s official charges were third-degree rape and first-degree criminal sexual acts. His prison sentence was an important event for the #MeToo movement, which works to protect women who are victims of sexual abuse.
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