Sale of Weinstein Company falls through
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The sale of the Weinstein Company to an investor group led in part by a former Obama administration official has fallen through, those involved in the potential deal announced Tuesday.

The company, co-founded by film mogul Harvey Weinstein, was to be sold to an investor group led by billionaire Ron Burkle and former Small Business Administration head Maria Contreras-Sweet for $500 million. However, investors recently learned about previously undisclosed liabilities and were unable to reach an agreement, Variety reported.

“We have received disappointing information about the viability of completing this transaction,” Contreras-Sweet said in a statement reported by Variety. “As a result, we have decided to terminate this transaction.”

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The Weinstein Company has weighed declaring bankruptcy following numerous sexual abuse allegations against Harvey Weinstein that became public starting in the fall.

The sale hit a snag last month when New York Attorney General Eric Schneiderman (D) filed a lawsuit against the business and the brothers who founded it.

The lawsuit alleged that the company broke New York law and violated employees’ rights by “failing to protect its employees from pervasive sexual harassment, intimidation, and discrimination." It also called for Weinstein's victims to be compensated.

Dozens of women came forward last year to accuse Weinstein of sexual misconduct. Weinstein subsequently was fired from the company.

The claims against the film mogul prompted a wave of allegations against powerful men in Hollywood, the media and politics as part of the "Me Too" and "Time's Up" movements.