A team of investors is expected to meet with the New York attorney general's office as soon as Wednesday in a move to salvage their proposed purchase of the beleaguered Weinstein Co.'s assets, according to people familiar with the matter.
Former U.S. Small Business Administration head Maria Contreras-Sweet and Southern California billionaire Ron Burkle had been close to a $500-million deal to buy the New York entertainment company earlier this month. Those plans were put on hold when New York Atty. Gen. Eric Schneiderman's office filed a lawsuit accusing the studio's board and management of being complicit in Harvey Weinstein's abuse of women.
The Democratic attorney general also blasted the proposed sale, demanding that Weinstein's accusers be adequately compensated and that people who enabled Weinstein not be rewarded by a deal.
Weinstein Co.'s board of directors fired President and Chief Operating Officer David Glasser on Friday night, after Schneiderman singled out Glasser in a news conference following his complaint.
Glasser's ouster was seen as a move to save the deal, but several sticking points are said to remain for the attorney general's office, which has been investigating Weinstein Co. for four months. If a deal is not reached, Chapter 11 bankruptcy likely awaits the company, which Weinstein and his brother Bob founded in 2005.
Glasser has retained a law firm to sue the studio and its directors for wrongful termination, with his lawyers saying he is being scapegoated by the board. He has not yet filed what his lawyers describe as a $85-million lawsuit also alleging retaliation, breach of contract and defamation.
"Mr. Glasser worked tirelessly to protect the employees of the company from Harvey Weinstein's frequent outbursts," said Eve Wagner, a founding partner of Sauer & Wagner LLP, in a statement Wednesday. "Numerous documents and emails clearly show that Mr. Glasser acted appropriately and responsibly whenever allegations of misconduct were brought to his attention."
Weinstein Co. has been trying to avoid bankruptcy since Harvey Weinstein was accused of sexual harassment and assault by dozens of women. The allegations have led to criminal investigations and lawsuits against the producer in multiple cities and sparked a movement across the entertainment and media industries to oust men accused of misconduct.
Weinstein, who was fired by the board Oct. 8, has denied all allegations of nonconsensual sex.
Weinstein Co. on Tuesday filed a motion to dismiss a separate federal class-action lawsuit against the company, saying Weinstein acted alone in his alleged abuses.
