Harvey Weinstein has voluntarily discontinued his fraud and financial conspiracy claims against his brother, Bob Weinstein.
In a suit, which was filed in the Supreme Court of the State of New York in February, Weinstein alleged that Bob Weinstein, David Glasser and others made Harvey Weinstein guarantee a $45 million loan from AI International Holdings in 2016 to support the film production and distribution company. Harvey Weinstein alleged that the money was not used to help the company, but rather that Bob Weinstein and Glasser took the money for “personal use, unauthorized bonuses, and unrelated financial dealings.” Harvey Weinstein alleged he was then wrongfully left solely responsible for repaying the loan after his sexual assault allegations led to a breach of contract.
On July 18, Harvey Weinstein voluntarily discontinued the claims against his brother, Bob Weinstein, with prejudice, meaning that the claims cannot be retried. The move did not involve any settlement or any paid consideration.
“Harvey’s notice fully resolves the claims he’d asserted against Bob in this case,” said Brian Kohn, Bob Weinstein’s attorney.
The claims against the other parties in the suit remain, however, Glasser and Irwin Reiter, another company executive who was also sued by Weinstein, have filed motions to dismiss.
Harvey Weinstein had filed a third-party complaint against the parties after being sued by AI International Holdings in 2017 over failed repayment of the loan. At the time, AI International Holdings sued saying “the business that supports a $45 million loan has dramatically imploded as a result of a massive, public scandal involving its founder and now-former senior leader, resulting in a default under the relevant loan documents.”
The Weinstein Company filed for Chapter 11 bankruptcy in March 2018, following the allegations brought against Harvey Weinstein.
The third-party complaint came ahead of Harvey Weinstein’s April retrial on rape and sexual charges. Weinstein was found guilty of one count of criminal sexual assault against former Project Runway assistant Miriam Haley and not guilty of the other count of criminal sexual assault against former model Kaja Sokola.
A mistrial was declared on the rape charge, after a juror refused to return to the jury room to debate the remaining charge. Prosecutors have said they plan to retry Weinstein on the rape charge, related to aspiring actress Jessica Mann, and that “she is ready and willing and wants to retry this count.”
