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Robert Weinstein Wins Appeal To Collect ‘Scream 4' Profits (1)

Aug. 11, 2022, 2:19 PMUpdated: Aug. 11, 2022, 3:38 PM

Harvey Weinstein’s brother can collect up to $2.3 million in profits from “Scream 4" because The Weinstein Co.’s agreement to sell its film library to Spyglass Media Group LLC allowed him to retain his rights to the money, a district court ruled.

A Delaware district court judge on Wednesday affirmed a bankruptcy court’s ruling that Robert Weinstein’s “participation rights” in the film entitled him to collect the profits from the 2011 slasher movie. Spyglass had appealed the Delaware bankruptcy court decision from August 2021.

Spyglass also appealed Thursday the district court’s decision to the US Court of Appeals for the Third Circuit.

Spyglass argued that an asset purchase agreement in The Weinstein Co. bankruptcy excluded Robert Weinstein from receiving any participation interest from the film after the close of the sale, according to the decision.

Robert Weinstein said that interpretation of the agreement and sale order violated contract interpretation principles and made the agreement “internally inconsistent, illogical, and perhaps illegal,” according to the decision.

The district court agreed with the bankruptcy court’s interpretation of the contract, finding that Spyglass acquired “Scream 4" subject to allowed liens, and Robert Weinstein is entitled to the payments, the decision said.

The Weinstein Co. filed for Chapter 11 in March 2018 amid the fallout of sexual assault and rape claims against its co-founder, Harvey Weinstein, who is serving a 23-year prison sentence. The company in May 2018 won approval to sell its assets to Lantern Entertainment LLC, which is now Spyglass, in a deal worth about $437 million including debt.

The Weinstein Co. established a $17 million fund to pay Harvey Weinstein’s abuse victims as part of its Chapter 11 plan that approved in January 2021.

The case is Spyglass Media Grp., LLC v. Weinstein, D. Del., No. 21-01151, opinion 8/10/22.

(Story updated with additional background and notice of appeal)

To contact the reporter on this story: James Nani in New York at jnani@bloombergindustry.com

To contact the editors responsible for this story: Maria Chutchian at mchutchian@bloombergindustry.com; Roger Yu at ryu@bloomberglaw.com