The Weinstein Company fired its co-founder Harvey Weinstein in the wake of the mounting sexual harassment allegations, but a new report shows that the company allowed it in its contract.
According to TMZ, Weinstein’s contract with the company was revised in 2015.
According to the contract, if Weinstein “treated someone improperly in violation of the company’s Code of Conduct,” he must reimburse TWC for settlements or judgments. Additionally, “You [Weinstein] will pay the company liquidated damages of $250,000 for the first such instance, $500,000 for the second such instance, $750,000 for the third such instance, and $1,000,000 for each additional instance.”
In other words, if Weinstein were sued and The Weinstein Company was forced to pay a settlement, his contract says he must pay the company back and pay a fine that increased if following lawsuits took place.
The board at TWC “knew” Weinstein had settled lawsuits with women, but they “assumed” it was to “cover up consensual affairs.”
The report also points out that Weinstein could be entitled to mediation or arbitration because he was not given a specific reason as to why he was fired, since the company essentially allowed the sexual harassment to take place according to his contract.
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