TMZ: Weinstein Contract Allowed for 'Improper' Behavior

A weird development in the Harvey Weinstein scandal: His firing by the company he co-founded may have been illegal despite his alleged abysmal behavior, according to TMZ

The site says it has seen Weinstein's 2015 employment contract and it leaves room for sexual harassment or other "misconduct." The contract states that if Weinstein treats someone "improperly" in violation of the company's code of conduct, he must reimburse the company for any settlement it pays and "pay the company liquidated damages" starting at $250,000 "for the first such instance" and rising to $1,000,000 for the fourth instance and any after that. The contract states that the payoff "cures" the misconduct, meaning no further action is taken.

In other developments:

  • Uncertain future for TWC. Variety reports that business partners and stars are deserting the Weinstein Company and a bankruptcy filing is a possible next step for the firm, which is believed to be loaded with debt.

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