A judge on Tuesday threw out Harvey Weinstein‘s lawsuit against Irwin Reiter, the head of accounting at the Weinstein Co. who blew the whistle on him in 2017.
Weinstein sued Reiter, his brother Bob and former COO David Glasser earlier this year, accusing them of a “financial betrayal” that contributed to the downfall of the company.
Judge Joel M. Cohen dismissed the suit against Reiter, finding that Weinstein was using it to try to punish someone who had spoken out against him.
Reiter was a key source for Jodi Kantor and Megan Twohey, the New York Times reporters who revealed Weinstein’s pattern of sexual harassment complaints and settlements in October 2017.
As the Weinstein Co. was collapsing in the wake of those revelations, Len Blavatnik’s company, AI International Holdings, sued Weinstein to try to recover a $45 million personal guarantee.
The case lay dormant for years as Weinstein’s company went bankrupt and he was sent to prison, and AI International ultimately concluded it would never see its money and agreed to drop the suit.
But after signing a dismissal notice in 2023, Weinstein’s lawyers had a change of heart and asked AI International Holdings not to file it. Instead, they decided to use the case to file a countersuit, seeking to shift blame for the default from Harvey Weinstein to Bob Weinstein and the other two executives. He alleged that Bob Weinstein and Glasser had taken improper bonuses, weakening the company’s financial condition, and that Reiter had allowed it to happen.
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Weinstein dropped the case against his brother in July, while Glasser and Reiter pursued motions to dismiss.
The judge ruled that Weinstein had no standing to file the countersuit, given that the underlying case was dismissed, that the allegations were past the statute of limitations, and that Reiter’s alleged conduct also did not amount to fraud. Additionally, Cohen concluded that Weinstein had used the moribund lawsuit “as a tactical vehicle to target Reiter.”
Though Weinstein denied any improper motive, the judge did not buy it.
“While Weinstein argues that the fraud claim on its face is not related to any matters that Reiter
has spoken out about, courts may look beyond the complaint to the “larger picture,’” Cohen wrote.
The judge also suggested in a footnote that the true purpose of the litigation was not to seek any recovery for AI International Holdings, but rather “for Weinstein to exact revenge against Reiter.”
Weinstein’s attorney, Imran Ansari, declined to comment.
Reiter’s attorney, Hugh Baran, argued that the outcome is a victory both for Reiter and for whistleblowers.
“Harvey Weinstein and other abusers should take note that courts will not be used as a weapon to torment people who expose or who suffer from their sexual abuse,” Baran said. “This sends a really clear message that if you speak out and face this kind of retaliation, the courts will protect you.”
The judge also ruled that Reiter is entitled to have his attorneys’ fees repaid.
Glasser’s motion to dismiss remains pending. Weinstein was convicted of sexual assault at his third trial in June, and is being held at Rikers Island while he awaits sentencing.
From Variety US