Stars Take A Big Hit From Weinstein Bankruptcy

A Third Circuit opinion has confirmed that some major Hollywood stars will take a loss on millions of dollars they had been owed by Harvey Weinstein’s production company. After Weinstein was accused of sexual misconduct and his company filed for bankruptcy protection, a company then called Spyglass Media acquired most of the Weinstein assets, including contracts that would give it the rights to many films and tv shows. At that point numerous Hollywood lights, including Bradley Cooper, Jennifer Lawrence, Robert De Niro, Meryl Streep, Bill Murray and Julia Roberts, maintained Spyglass would have to pay Weinstein’s debts before taking over those contracts. In a test case, Spyglass prevailed and now has won its case for the second time on appeal. An article in the Hollywood Reporter explains the Third Circuit’s rational, including the conclusionary remark from Judge Thomas Ambro. “This pill is bitter to swallow,” he wrote, “but bankruptcy inevitably creates harsh results for some players.”