Harvey Weinstein sues brother Bob over misuse of $45M loan
What's the story
Disgraced Hollywood mogul Harvey Weinstein has opened a new legal front as he continues his retrial for an overturned 2020 rape conviction.
He is suing his brother Bob Weinstein and a few business associates over a $45 million loan he guaranteed in 2016.
The lawsuit was filed in the New York County Supreme Court.
In the 22-page complaint, Weinstein alleged Bob and other associates at The Weinstein Company committed fraud related to this loan from AI International Holdings (BVI) Limited.
Allegations
Weinstein alleges loan funds were 'pilfered and misappropriated'
Weinstein claims that the money from this loan was "pilfered and misappropriated for their own uses and benefits, in blatant violation of the loan's intended purpose."
The lawsuit also names Chief Operating Officer David Glasser.
Notably, the company filed for bankruptcy in November 2017 following widespread allegations of sexual assault and harassment against Weinstein, which led to his ostracization from the industry.
However, Weinstein claims that the true cause of the company's collapse was a "financial betrayal" by his brother.
Financial misconduct
Misuse of company funds has been alleged
Per the lawsuit, Weinstein alleges that large chunks of the $45 million loan were utilized for unauthorized and personal purposes. These included bonuses, unrelated business ventures, and personal expenses.
He claims Bob "withdrew or received at least $2.2 million in personal advances and loans from The Weinstein Company Holdings LLC between August 2017 and February 2018."
The lawsuit says these financial extractions were made while creditors remained unpaid and the companies faced imminent collapse.
Accusations
Weinstein accuses associates of financial misconduct
Weinstein has also accused Glasser and associate Irwin Reiter of similar financial misconduct.
He claims Glasser followed a systematic pattern of self-enrichment, including authorizing a $1 million payment to his father on company funds.
Reiter, who had regular access to financial records in his executive role, allegedly failed to prevent the misappropriation of loan funds and actively participated in the approval and concealment of improper financial transactions.
Settlement dispute
Weinstein alleges fraudulent settlement over unpaid loan
The inability of The Weinstein Company to repay the loan prompted settlement talks, led by Bob and Glasser.
In his lawsuit, Weinstein argues that this settlement was made with fraudulent intent. He claims the defendants—his brother Bob and Glasser—struck a self-serving deal with AI International to resolve the debt for a significantly reduced amount of around $15 million.
As a result, Weinstein asserts that he was left responsible for the entire loan balance—which totaled approximately $30 million, including interest.
Legal demands
Weinstein seeks damages and injunctive relief
Weinstein, who was "solely liable for repayment" of the loan, is seeking compensatory and punitive damages, as well as injunctive relief to be determined at trial.
This lawsuit comes after a $5 million claim notice filed by Weinstein and his legal team three months ago against Rikers Island Correctional Facility, Bellevue Hospital, and New York City officials.
They accused the care providers of negligent care in attending to Weinstein's health issues while he was in custody.