This One-Hour Briefing explores the rise and use of the “Weinstein Clause” (also known as the “‘#metoo’ Representation”) in M&A transactions. As more and more prominent people have been publicly accused of sexual misconduct – and as the companies they work for have suffered economic repercussions relating to those allegations – the M&A community has taken notice and taken action. The bankruptcy of Weinstein Company, once one of the largest “mini-major” studios in Hollywood, is a prominent example of the emergent risk and “cautionary tale” against “business as usual.” In response to this growing risk to shareholder value, investors are seeking to identify the risk before any damage is done (or at least before the deal is closed). The “Weinstein Clause” is one tool they are using in the effort. The Weinstein representation requires a Selling Company to disclose – or face risk of financial repercussions for failing to disclose — any sexual misconduct allegations and/or settlements involving the company’s key employees and executives.
This webcast was recorded on March 7th, 2019. We are proud that Joe Ehrlich, Executive Vice President of the Owens Group, was one of the presenters. For more information or to purchase the recording, visit the briefing page here.