was aware of at least some of the settlements in 2015. “If it is correct that the board knew about this propensity and the future likelihood of an occurrence, then the question would be whether the board was fulfilling its fiduciary duty,” Pileggi said.
In such cases, at issue is whether the Weinstein Co.
William Brendel, president at CEO of the Center for Ethical Organizations at the University of St.
Thomas, which specializes in organizational behavior, suggested that it was a vexing problem for companies and other entities, even after devoting significant resources into sexual harassment training.
knew about them, also raise questions of accounting.
Earlier this year, there were reports that federal prosecutors were investigating how settlement payments involving claims against Fox News chieftain Roger Ailes were disclosed. “I’d point out that both of these companies are in essence controlled by dynamic founders, which makes independent oversight much less likely,” Minow said.
A challenge for a plaintiff would be in showing that a harassment scandal was materially great enough to affect a company’s bottom line or share price.
Pileggi cited a Delaware Court of Chancery decision — known as the “Caremark” case — that placed liability on board members to act when aware of “red flags” that “would make a reasonable person — who has a duty to advance to best interests of the company — take action and avoid further harm to the company, especially in the contest of a likelihood that the company’s agent may violate the law and bring harm to the company.” Weinstein has denied allegations of nonconsensual sex.
With over 3 million members and more joining every day you can be confident that you will find your perfect partner here.The focus on sexual harassment cases is “a huge wakeup call,” said Jay Holland, labor and employment litigator at Joseph, Greenwald & Laake in Maryland. If companies don’t wake up and don’t take very aggressive action, they now see that they are putting the entire company at risk.” The New York investigation of the Weinstein Co., a civil probe, could lead to such things as monetary penalties against the company, or equitable remedies like injunctive relief, he said.That could include requiring that the company take steps in the way it trains or hires employees, or even that a monitor be retained to ensure compliance.He wrote on Twitter earlier this month that he “fired Weinsteins because they were irresponsible, and Harvey was an incorrigible bully.Had no idea he was capable of these horrible actions.” Eisner clashed with Weinstein on issues like spending.