12:13pm PT by Eriq Gardner
The Weinstein Co. Resolves 'Gold' Lawsuit
The Weinstein Co. is out of one lawsuit. The case has nothing to do with the alleged sexual misbehavior of Harvey Weinstein, but nevertheless, the embattled independent studio will be thankful to rest one legal problem amid many others.
The $15 million lawsuit came in February from Speedee Distribution, a subsidiary of FilmNation Entertainment, which alleged that TWC agreed not to release any other motion picture within a week of The Founder, the story of McDonald's mogul Ray Kroc. The agreement was allegedly breached this past January when TWC released Gold, based on a true story and starring Matthew McConaughey, a week after the release of The Founder.
On Friday, both sides stipulated to the discontinuance of the lawsuit in New York Supreme Court. Terms of the settlement were not disclosed in court papers.
In the past couple of weeks, TWC has been hit with several lawsuits over Weinstein's conduct, but pre-existing litigation has been impacted by the scandal as well and isn't immaterial to TWC's future.
In late October, two companies suing TWC told a judge of the need to put $1.75 million in escrow, given reports of TWC's precarious financial position.
Then, on Nov. 2, the Chapter 7 trustee of Genius Products — a bankrupt home-entertainment distributor once chaired and owned by Steve Bannon — demanded an asset freeze against TWC to ensure that there would be money left to collect on a $130 million fraud claim.
TWC has now filed papers opposing the application for a restraining order.
Besides arguing that TWC is likely to prevail against the fraud claim, TWC's lawyers told the judge, "TWC is not engaged in a 'fire sale,' is properly exercising its business judgment and would suffer clear injury if the injunction is entered."