Hang on a minute

The sale is off for now, boys.

The fire sale of the Weinstein Company hit a last-minute snag on Sunday, when Eric T. Schneiderman, New York’s attorney general, filed a lawsuit against the studio and its fraternal founders alleging that they repeatedly violated state and city laws barring gender discrimination, sexual harassment, sexual abuse and coercion.

Harvey and Bob were hoping to avoid bankruptcy.

But the final-stage talks came to a screeching halt on Sunday afternoon, according to the two people briefed on the process, as the investor group received word that Mr. Schneiderman was about to file a lawsuit based on an ongoing four-month investigation into the Weinstein Company’s internal dealings.

The lawsuit, which refers to Harvey Weinstein by his initials, says that the company’s management and board of directors “were repeatedly presented with credible evidence of HW’s sexual harassment” of company employees and interns “and his use of corporate employees and resources to facilitate sexual activity with third parties.”

In one instance, a woman who complained to human resources later discovered that it was forwarded by email to Mr. Weinstein, the legal papers say. The lawsuit added that, by guaranteeing the silence of victims and other employees through nondisclosure agreements, the company enabled Mr. Weinstein’s “unlawful conduct to continue far beyond the date when, through reasonable diligence, it should have been stopped.”

The lawsuit detailed, in the words of one employee, a “toxic environment for women. The suit says Mr. Weinstein had used female employees to aid him in his pursuit of sexual targets. It says that two employees described having to procure injectable erectile dysfunction medication for Mr. Weinstein and says that one of them received a bonus for obtaining the medication “and was at times directed by HW to administer the injections.”

It was just Harvey’s little hobby. Can’t a guy have a hobby?

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