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Harvey Weinstein, 65, is facing dozens of allegations of abuse, including rape, but denies non-consensual acts.
The lawsuit filed by New York prosecutors alleges Harvey Weinstein abused female employees and made verbal threats to kill staff members.
However, Harvey Weinstein’s lawyer said a “fair investigation” would show that many of the allegations were without merit.
The Weinstein Company’s board of directors said it was “disappointed” by the lawsuit.
On February 11, New York Attorney General Eric Schneiderman said that he had filed the suit against The Weinstein Company, as well as Harvey Weinstein and his brother Robert, who co-founded the studio.
Eric Schneiderman is seeking an unspecified sum to cover damages, plus penalties, for victims of alleged abuse by Harvey Weinstein.
The document alleges that Harvey Weinstein harassed and abused women employed by the studio for years.
It accuses senior executives at the company, including Robert Weinstein, of failing to prevent the mistreatment of staff despite being presented with evidence.
The suit casts doubt over the sale of The Weinstein Company, which has been battling bankruptcy and is in talks with investors.
Eric Schneiderman said his investigation was continuing, but he had brought the suit out of concern that a possible sale would leave alleged victims without adequate compensation, and could benefit “perpetrators or enablers”.
It is reported that businesswoman Maria Contreras-Sweet has led talks to buy the studio for $500 million.
However, after news of the suit emerged, negotiations are now said to be on hold.
According to Variety, investors baulked at the prospect of the lawsuit adding conditions to the sale.
In October 2017, The New York Times published a story detailing decades of allegations of harassment against Harvey Weinstein.
Since then more than 50 women, among them some of the biggest names in Hollywood, have accused him assault, harassment, abuse and rape.
In the wake of the allegations, Harvey Weinstein was sacked by the board of his company.
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