Disgraced movie mogul Harvey Weinstein might actually have a case against his former company thanks to an absurd clause in his contract that allowed for sexual harassment.
TMZ was “privy to” the contract Weinstein signed with The Weinstein Company in 2015 which states that if he got into trouble for “misconduct,” including sexual harassment, all he had to do was pay any potential legal fees and a fine.
The contract stipulated that if Weinstein “treated someone improperly in violation of the company’s Code of Conduct,” he had to reimburse The Weinstein Company for any payouts it made to the victims, according to TMZ.
Additionally, it stipulated that he had to “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.”
“The company structured a contract that essentially allowed for sexual harassment if you’re willing to pay a monetary price,” TMZ founder Harvey Levin told Fox News’ Martha MacCallum on “The Story” Thursday.
According to the contract, Weinstein paying out judgements and fines was a “cure” and no further action could be taken by the company against him.
The Board of Directors was allowed to fire Weinstein if he was convicted of a crime, according to the contract, but that has not happened.
Another reason he could be fired was for “the perpetuation by you [Weinstein] of a material fraud against the company,” TMZ reported.
And he had to be given mediation or arbitration before he could be fired. None of which happened before The Weinstein Company canned him this week amid mounting accusations of sexual harassment and rape.
“He has a real case against the company for being wrongfully terminated,” Levin said, adding “the bigger issue is the company structured a contract that essentially allows for sexual harassment if you are willing to pay a monetary price.”
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