NACD - National Association of Corporate Directors

Weinstein Co. Sale in Doubt as N.Y. Attorney General Files Civil Rights Lawsuit

A deal to acquire the troubled Weinstein Co. has been thrown into serious jeopardy after New York Attorney General Eric Schneiderman filed a civil rights lawsuit against the company, states Variety (Feb. 11, Maddaus, Littleton).  An investor group led by Maria Contreras-Sweet has been negotiating to purchase the company for $500 million. The two sides had been meeting for days trying to hammer out a deal and have it announced by Monday.  "But now Contreras-Sweet's group has halted all work on the deal after Schneiderman's office threw an eleventh-hour wrench into the process by raising concerns about David Glasser, the longtime Weinstein Co. executive slated to become CEO under the new investor group," notes the publication.  Glasser was a close associate of Harvey Weinstein, and the attorney general has come to believe he failed to protect employees from the mogul's sexual misconduct. Schneiderman has also voiced doubts about whether a proposed victims' fund would provide adequate compensation.

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