Harvey Weinstein may have been illegally fired from his company according to his contract, which says it did not matter if he was sued for sexual harassment so long as he took care of any payouts.
Weinstein's 2015 employment contract, which was obtained by TMZ, said that so long as the 65-year-old paid whatever the company owed along with a fine, it did not matter how many times he was accused of sexual harassment or misconduct, according to Daily Mail.
Additionally, according to internal documents obtained by the New York Times, the company knew about the harassment allegations for at least two years prior to the story breaking last week.
Harvey's brother and fellow co-founder Bob Weinstein, as well as the company's president, David Glasser, had told concerned staff as recently as Tuesday that they were shocked and unaware of the confidential settlements made with various women.
However, according to a clause in his 2015 contract, if the movie mogul was charged with sexual harassment he was in charge of all legal payouts and had to pay an additional fine to the company.
"You [Weinstein] will pay the company liquidated damages of $250,000 for the first such instance, $500,000 for the second such instance, $750,000 for the third such instance, and $1,000,000 for each additional instance," the contract reads.
According to the document, as long as Weinstein pays it constitutes a "cure" for any misconduct and no further action can or will be taken.
In more simple terms, that means that no matter how many times he is sued - as long as he is willing to pay he won't be fired.
If Weinstein were to ever be indicted for a crime the contract contains language that would allow the Board of Directors to fire him.
He can also be fired for "the perpetuation by you [Weinstein] of a material fraud against the company."
The board member who negotiated the contract, Lance Maerov, told TMZ that the Board knew Weinstein settled prior lawsuits by various women, but "assumed" it was to cover consensual affairs.
That assumption would not constitute "material fraud" on Weinstein's part, and so would not activate that clause.
Sources close to TMZ say Weinstein has yet to be given a specific reason for being fired.
Additionally, his contract says that before he can be fired he has the right to mediation or arbitration - neither of which he received.
A spokesperson for The Weinstein Company told TMZ that the company had a right to fire Harvey because he did not notify the Board of Directors of settlements.
David Boies, who worked at Weinstein's lawyer when the contract was settled, said the board was told of three or four of the confidential settlements.
Weinstein's contract renewal negotiations came around the same time Italian model Ambra Battilana went to the NYPD with accusations that Harvey had groped her.
She, along with help from officers, had taped Weinstein confessing but the District Attorney never pressed charges.
Tensions between Harvey and his business partner brother Bob had been mounting for some time prior to the sex harassment scandal breaking.
A long-simmering antipathy between the brothers supposedly worsened after the death of their mother, Miriam, a year ago.
The pair hadn't spoken in 18 months, according to MarketWatch and Harvey has since come out accusing Bob of leaking the allegations in a successful attempt to take full control of their film company.
More than 30 women have now come forward with allegations of sexual harassment against the Hollywood producer who was once described as the "God" of the film industry.
The accusations, including from some of the world's most famous actresses, range from inappropriate massages to rape and date back nearly three decades.
The list of women claiming to be victims of Weinstein has grown rapidly since the New York Times published a story last week alleging decades of harassment.
Gwyneth Paltrow and Angelina Jolie are among the most high profile to admit they turned down advances from Weinstein when they were young actresses.
The Weinstein Company voted to fire Harvey on Sunday - three days after the damning Times report was published. The brothers had been co-chairmen of the board, but after Sunday Bob was installed as full chairman.
Weinstein was spotted boarding a private jet in California late Wednesday to fly to an exclusive rehab clinic in Arizona where he said he was going to undergo treatment.