Inside Weinstein Company Crisis: Execs Blindsided, Harvey Paid Settlements Himself (Exclusive)
Weinstein is said to be combative, unwilling to accept responsibility and eager to sue The New York Times
Sharon Waxman | October 5, 2017 @ 4:38 PM
Last Updated: October 5, 2017 @ 4:58 PM
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For the past two weeks, Harvey Weinstein has been hunkered down with lawyers, advisers and supporters trying to fight his way out of career-threatening allegations that he engaged in decades of sexual misconduct.
Despite a stilted statement of contrition on Thursday combined with an unusual vow to go after the National Rifle Association, Weinstein is said to be combative, unwilling to accept responsibility and eager to go after The New York Times for its bombshell report that at least eight women received monetary settlements after making claims of inappropriate behavior by him over the last several decades.
Weinstein’s statement of contrition was written by lawyer Lisa Bloom and not by Weinstein himself or anyone at the company, according to a company executive who declined to be identified.
Bloom did not respond to requests for comment; The Weinstein Company declined to comment.
Inside the company’s New York headquarters on Thursday, executives and other staffers were said to be in a state of shock. The news was all the more upsetting since many top Weinstein executives are women.
According to an individual familiar with the situation, senior executives including Harvey’s brother and co-founder, Bob, were “floored” by many of the details in The New York Times story — including actress Ashley Judd’s claims that Harvey had sexually propositioned her two decades ago.
While many believed he strayed outside his marriages, the individual said, senior executives were not aware of the many payoffs to make allegations of sexual harassment go away.
The company took seriously female staffer Lauren O’Connor’s 2015 memo alleging sexual advances, the insider said, but then dropped the matter when the complaint was withdrawn within 48 hours.
At an emergency meeting of TWC board on Tuesday, board members pressed one of Weinstein’s lawyers for how many payoffs there had been over the year and were told “eight to 12,” the individual said. The New York Times only cited eight payoffs.
At that meeting, the board decided to ask Weinstein to take a leave of absence, the individual said.
All the payoffs were made by Weinstein personally, not by the company, according to the insider — which might explain why top executives were unaware of the scope of the issue.
When the company first learned of the Times’ investigation several weeks ago, the individual said Weinstein was advised to get ahead of the story by writing an op-ed and acknowledging past misconduct.
Instead, the insider said the mogul decided to hole up with his lawyers David Boies, Lisa Bloom and Charles Harder and try to fight the story — a combative stance to public controversy that has previously served him well.
According to at least two executives, Weinstein has not been seen at his Tribeca headquarters in about two weeks.
Here's Where 14 Moguls Kicked Back This Summer, From Jay-Z to Harvey Weinstein (Photos)
Moguls on a Boat 2016 is here.
A humid August fog rumbles through Los Angeles, but for Hollywood machers, media giants and other thought leaders who shape the entertainment industry, it's time to kick back.
Earnings are in and surf's up for everyone from studio heads (Harvey Weinstein), music touring blockbusters (Beyonce Knowles) to powerful COO's (Ciao, Sheryl Sandberg!)
WHO: Beyonce and Jay-Z
WHERE: Yachting in Nice, France, and Nerano, Italy
STATUS: If chilling on floating palaces in the south of France and various parts of the Mediterranean seems extravagant, don't worry -- Beyonce is there for work. The singer and her mogul husband, Jay-Z, have been squeezing mini-breaks in between stops on her Formation World Tour -- which raked in over $123 million for its first of four legs. Her much-discussed visual album "Lemonade" is up for four Emmy awards, so she may step out of the sun and head back to L.A. for work come September.
STATUS: Of all the moguls in our ranks, the Viacom CEO is perhaps the most in need of a holiday. The embattled executive is fighting for his job at his midtown Manhattan headquarters, while shuttling back and forth to his longtime home in East Hampton (a chauffeured SUV ride away from preferred haunts like the famous Italian eatery Nick and Toni's). Dauman has a September 19 trial date in Massachusetts, where a judge will parse his accusations that boss Sumner Redstone is not competent, and under the undue influence of daughter Shari Redstone.
STATUS: Sandberg is no stranger to elite-status multitasking, which is why her vacation spot comes as no surprise. The best-selling author of "Lean In" is using her downtime to see some natural beauty and get in a bit of cardio, biking through the Italian Alps (glimpses of which were shared on Instagram). Once home, she'll get to work on another book -- on the topic of resilience in the face of her late husband's untimely death.
STATUS: The Sony Entertainment CEO's jaunt to the East Coast haven coincided with President Obama and the First Family's annual visit. Lynton's studio division is sixth place in market share for 2016 so far. Upcoming releases include the anticipated releases "Billy Lynn's Long Halftime Walk" and the Jennifer Lawrence-Chris Pratt space romance "Passengers." Sony's music division, also under his purview, purchased back 50 percent of the Sony-ATV music catalog, previously owned by the Michael Jackson estate, which is expected to earn big in publishing royalties.
STATUS: Some might argue that life is a vacation for Oprah Winfrey, thanks to the magnate's trademark air of serenity. Don't let that fool you into thinking she's ever really resting -- even on holiday hiking Colorado's Rocky Mountains, she's plugging her various original programs on the OWN Network. This fall she'll step in front of the camera again as an actress, in Ava DuVernay's "A Wrinkle in Time" and the HBO original movie "The Immortal Life of Henrietta Lacks."
STATUS: Weinstein, along with his wife, Marchesa designer Georgina Chapman, is stretching out in his seven-bedroom home in Amagansett (not far from a rental pad the Clintons have used on and off for years). TWC has had a lean year, but Harvey's got an awards hopeful in his pocket with December's Michael Keaton drama "The Founder," and is about to head to one of his native spaces -- the Toronto Film Festival, in September.
STATUS: Mogul and legendary music manager Irving Azoff eschewed the confines of the Mallorca, Spain (where he spent last year on a boat with Revlon billionaire Ron Perelman) in favor of a domestic hang. He visited the Idaho hidden gem Coeur d'Alene, which Barbara Walters once called "a little slice of heaven." Azoff continues to manage legends like The Eagles, comedy giants like Chelsea Handler and his growing publishing shop Global Music Rights.
STATUS: While he might not be a household name, investor Roman Abramovich (and his reported $7.8 billion net worth) is accustomed to annually inviting a prominent Hollywood type out on his mega-yacht each summer season. This year, it's actress Kate Hudson and her brood of boys. The luxury liner features two swimming pools, a beauty salon, conference rooms for the occasional meeting and a helipad. Abramovich's wife is art collector and publisher Dasha Zhukova.
STATUS: Kavanaugh is on the rebound after the cruel summer of 2015, when his Relativity Media filed for bankruptcy. After shaving off a remarkable amount of creditor debt, the doting new dad emerges with Relativity Studios -- now under the creative leadership of Kevin Spacey's business partner Dana Brunetti. After he washes off the sand from his Point Dune spread in Malibu, Kavanaugh will prepare to release his first film in over two years: the Kate Beckinsale drama "The Disappointments Room," which opens wide Sept 9.
STATUS: Excuse us while we resist the "Empire" metaphors, but longtime Hollywood super-producer Grazer is aboard media mogul Geffen's 454-foot skiff Rising Sun, which sleeps 16 comfortably in eight state cabins. Grazer continues to deliver Fox sizable ratings as "Empire" ages gracefully, while also overseeing Sony's major investment in the upcoming Stephen King adaptation "The Dark Tower."
STATUS: The host and reality TV creator celebrated the end of his first year on his renewed deal with iHeartMedia, which reportedly paid him over $25 million for a three-year term. In a departure from the yachting he did last year with Chris Hemsworth, Seacrest hit the Norwegian fjords, the gorgeous natural formations that result when a glacier dries up. His other side gigs haven't necessarily been a grind -- NBCUniversal sent him to Rio to cover human interest around the 2016 Summer Olympics. His eponymous production company continues to produce E! reality staple "Keeping Up With The Kardashians," and NBC's scripted Jennifer Lopez series "Shades of Blue."
Moguls on a Boat 2016: Enjoy a vicarious tour through Nice, the Italian Alps and the enclaves of Malibu in TheWrap’s annual executive getaway report
Moguls on a Boat 2016 is here.
A humid August fog rumbles through Los Angeles, but for Hollywood machers, media giants and other thought leaders who shape the entertainment industry, it's time to kick back.
Earnings are in and surf's up for everyone from studio heads (Harvey Weinstein), music touring blockbusters (Beyonce Knowles) to powerful COO's (Ciao, Sheryl Sandberg!)
