"Harvey Weinstein and The Weinstein Company failed their employees. After all the harassment, threats and discrimination, their victims are finally getting some justice," New York Attorney General Letitia James said in a statement.
Under the plan, a victim compensation fund of $ 18,875,000 will be created and distributed to "women who experienced a hostile work environment, sexual harassment and gender discrimination while working at The Weinstein Company, as well as sexual abuse by Harvey Weinstein. " said the attorney general's office.
As part of the settlement, survivors will also be released from confidentiality, nondisclosure, or non-disclosure agreements with The Weinstein Company or any of the company's former representatives related to any sexual misconduct by Weinstein. They will now be free to tell their stories without fear of retaliation, prosecutors said.
The settlement has yet to be approved by the district court and the bankruptcy court presiding over the bankruptcy case of The Weinstein Company.
"This settlement is a victory for every woman who has experienced sexual harassment, discrimination, intimidation, or retaliation by her employer," said James.
Douglas H. Wigdor and Kevin Mintzer, attorneys for several of Harvey Weinstein's alleged victims, said they disagree with the settlement and consider it deeply unfair for various reasons, including that Weinsten does not accept responsibility for his actions.
"The proposed settlement is a total sale of Weinstein survivors and we are surprised that the Attorney General can somehow brag about a proposal that fails on so many different levels," the attorneys told CNN in a statement.
"We are completely amazed that the Attorney General is taking a victory lap for this unfair and inequitable proposal, and on behalf of our clients, we will be vigorously objecting in court," they added.
CNN has reached out to Weinstein's representatives.
Weinstein is serving 23 years in prison in New York after being convicted of committing a first degree criminal sexual act and third degree rape. He faces several charges in Los Angeles, including forced rape, sexual penetration by use of force, and sexual assault. Weinstein has denied the allegations.