The studio co-founded by disgraced mogul Harvey Weinstein has sacked its chief operating officer.
The Weinstein Company (TWC) announced on Friday that the board had unanimously voted to part ways with David Glasser.
The move came after a proposed sale of the studio was jeopardised when New York’s attorney general filed a lawsuit accusing the board of failing to protect employees from Weinstein.
“The board of The Weinstein Company has unanimously voted to terminate David Glasser for cause,” a TWC statement said, according to multiple reports.
New York’s attorney general Eric Schneiderman also called for any sale of TWC to be used to compensate victims and said that neither “perpetrators nor enablers” must profit.
Mr Schneiderman said in a press conference that Glasser would have been put in charge after the sale despite, he claimed, there being evidence he failed to stop Weinstein.
Weinstein, 65, had a major fall from grace when dozens of women, including leading Hollywood stars, accused him of sexual harassment and abuse.
After the New York lawsuit, a lawyer for Weinstein, Ben Brafman, said there was “certainly” no criminality in his behaviour, despite it being “not without fault”.
Weinstein, who founded TWC with his younger brother Bob in 2005, has denied any allegation of non-consensual sex.
In October, the disgraced sibling was fired by TWC and then he stepped down from its board of directors as allegations mounted.