Judge throws out $27.1m deal that spared Weinstein paying victims

‘Obnoxious’ plan would have paid some of his victims but also spared convicted rapist Harvey Weinstein directly footing bill.

Convicted rapist and disgraced movie mogul arrives at the Manhattan Criminal Court in New York City ahead of being jailed for 23 years. Picture: Johannes Eisele/AFP

A $US19 million ($AU 27.1m) settlement between Harvey Weinstein and dozens of women who have accused him of sexual harassment or abuse was torn up by a Manhattan federal judge on Tuesday.

In a brisk, blunt hearing Judge Alvin Hellerstein of the Southern District of New York refused to give preliminary approval to the deal struck between the city’s attorney-general, the disgraced film mogul, his former business partners, his creditors and many, but not all, of the women who have made allegations against him.

The judge questioned the fairness of the agreement and queried whether the claims of accusers attached to the proposed class-action settlement were too varied to be grouped together.

Judge Hellerstein, who a decade ago oversaw 96 confidential compensation claims from families of victims of the September 11 attacks, took particular issue with a separate part of the agreement that would have allocated $US12 million $AU17.1m) from insurance companies to Weinstein, his brother, and other former board members of their film company to help pay their legal fees.

“The idea that Harvey Weinstein can get a defence fund ahead of the claimants is obnoxious,” the judge said.

Weinstein, 68, was convicted earlier this year of rape and sexual assault against two women and sentenced to 23 years in jail. Previously one of the most powerful men in Hollywood, he was toppled by reports, starting in October 2017, that he had harassed or abused more than 80 women.

The judge said the idea Weinstein could get a defence fund ahead of the claimants was ‘obnoxious’. Picture: Kena Betancur/AFP

In the build-up to the hearing on Tuesday several women, who were not included in the settlement, filed formal objections against it. “The judge identified so many problems, it was not even close,” said John Clune, a lawyer for one of them. “Functionally, the whole thing has been thrown out,” he told The New York Times. “Everyone wants a good result for these survivors. This wasn’t it.”

The attorney-general, Letitia James, had announced the tentative agreement on June 30. It would have provided between dollars $US7500 and $US750,000 to some women who accused Weinstein of sexual abuse but it did not require him to admit wrongdoing or make payments himself as the money would come from insurance.

A spokeswoman for Ms James said that her office was reviewing the decision. A spokesman for Weinstein did not comment.

The Times