Deals
Wall Street Is Adding a New ‘Weinstein Clause’ Before Making Deals
- Sellers are being asked to vouch for executives’ behavior
- Bidders can get money back if sexual misconduct is discovered
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On Wall Street, it’s known as “the Weinstein clause.”
Advisers are adding guarantees to certain merger agreements in light of the sexual misconduct scandals that have enveloped the producer Harvey Weinstein and other high-profile businessmen -- ones that legally vouch for the behavior of a company’s leadership.