The Weinstein Co. may release employees from their non-disclosure agreements as part of a bankruptcy filing, giving a boost to those who are pursuing cases against Harvey Weinstein, a source tells Variety.
The company is expected to declare bankruptcy as soon as Monday, after a deal to sell the company to an investor group backed by Ron Burkle fell apart two weeks ago.
New York Attorney General Eric Schneiderman had been pushing the company to waive its non-disclosure agreements. That would assist the office in its pending discrimination suit against the company and against Harvey and Bob Weinstein. It would also free employees to speak to the media about their experiences at the company.
Several actresses and former employees have filed suit against the company in Los Angeles, New York, and Toronto, alleging that the company was complicit in Weinstein’s misconduct. A bankruptcy filing would put those suits on hold, though Schneiderman’s case would be allowed to continue.
Criminal investigators in Los Angeles, New York and London are also investigating allegations against Weinstein.
Schneiderman’s office attempted to mediate a sale to the Burkle group last month, and has continued to talk to the company since the talks collapsed. A release of the non-disclosure agreements could form one part of a settlement of the attorney general’s case against the company.