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Harvey Weinstein, the infamous film executive currently serving time for sexual crimes, has filed a lawsuit against his brother Bob Weinstein and other executives linked to their now-defunct film production company. In his suit, he claims they misled him into personally guaranteeing a $45 million loan in 2016, which they allegedly used for personal gain, contributing to his downfall.
Weinstein, now 72, lodged this lawsuit amid ongoing civil litigation in New York City, where a lender has accused him of failing to meet his loan obligations. He is concurrently awaiting a retrial related to multiple charges of sexual misconduct.
Imran Ansari, Weinstein’s attorney, expressed that his client was exploited by those he trusted, securing the loan with the belief that it would help stabilize The Weinstein Company. “While Harvey took on the debt, others within the company were profiting from this arrangement, leaving him to struggle under the weight of their misdeeds,” Ansari stated.
The lawsuit suggests that Bob Weinstein and other company executives orchestrated a scheme to undermine Harvey, ultimately leading to the company’s bankruptcy in 2018, coinciding with escalating sexual misconduct allegations against him.
Responding to the allegations, Bob Weinstein’s attorney Brian Kohn dismissed the claims as baseless, directing inquiries to the claims made by Harvey Weinstein.
The lawsuit also names David Glasser, the former chief operating officer of The Weinstein Company, now heading 101 Studios, known for its work on the “Yellowstone” series. A comment from Glasser was not immediately available.
The loan from AI International Holdings was intended to assist two affiliates of The Weinstein Company, as well as Harvey Weinstein himself. Following accusations of default, AI International initiated legal action to recoup the funds.
Weinstein’s lawsuit claims he was deceived into guaranteeing the loan under the pretext of aiding the struggling company, only to have millions redirected to improper uses, putting him at financial risk.
“The Companies lost over $12 million in cash that was crucial for paying back the loan, leading to their insolvency and Harvey’s significant personal financial liability,” the lawsuit states.
Filed in Manhattan’s state Supreme Court, the suit details significant financial and reputational damage suffered by Weinstein due to the alleged misconduct.
Part of his claims includes allegations that Bob Weinstein withdrew around $6 million from company funds under false pretenses, prioritizing his interests over those of creditors, including AI International.
Weinstein expressed his shock over discovering fraudulent activity following his departure from The Weinstein Company, asserting that many executives played key roles in his decline.
In addition, the lawsuit accuses Glasser of approving $5 million in excessive bonuses and misusing company resources for personal payments, including a $1 million payout to his father without justification.
After Harvey’s removal as co-chairman amid allegations of misconduct, AI International sued him and the two affiliates, claiming they defaulted on the loan obligations.
According to Weinstein, he was left responsible for repaying approximately $30 million plus interest, after his brother and Glasser settled their liability for about $15 million under what he terms “bad faith negotiations.”
The lawsuit aims to absolve Harvey Weinstein of the financial liabilities linked to the loan while seeking punitive damages for the alleged wrongful actions and covering his legal expenses.
Bob Weinstein has since requested that the court block any subpoenas relating to document requests or depositions related to Harvey’s legal team.
Weinstein, once a titan of Hollywood, known for producing iconic films such as “Pulp Fiction,” has become synonymous with the dark side of the industry following the allegations against him. His case significantly influenced the emergence of the #MeToo movement, as numerous individuals shared their experiences with sexual harassment and assault in the film industry.
Despite the serious charges he faces, Weinstein has continuously maintained that his interactions were consensual.
Currently, Weinstein is undergoing retrial for charges that include allegations of rape and sexual assault involving multiple victims, as new accusations have emerged in recent months.
His earlier conviction and 23-year prison sentence were overturned by an appeals court over concerns regarding the previous trial’s handling of evidence unrelated to the charges brought against him.
Source
finance.yahoo.com