The New York attorney general's (NYAG) recent civil rights complaint against the Weinstein Company highlights the personal liability risks of leadership inaction to credible harassment evidence.
The complaint named only the company and the Weinstein brothers as defendants. Yet the complaint is notable for its extensive criticism of the company's management and its board of directors. This includes detailed allegations of board and executive inaction despite being "repeatedly presented with credible evidence" of Mr. Weinstein's harmful activity."
Specific criticism included allegations regarding the failure to investigate any complaint over a 12-year period; the inaction of the Human Resources Department; the failure of individual directors to follow up after being notified by management of complaints; and the unwillingness of a majority of the board to support those directors who sought Mr. Weinstein's personnel file in advance of contract negotiations.
The attorney general also sought termination of complicit executives as part of any sale of the company.
While "Weinstein" is an egregious example of alleged misconduct, the NYAG action provides a clear example of the personal fiduciary risk from unresponsiveness to "red flags" of harassment.
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