In a statement obtained by the Los Angeles Times, Schneiderman's office described the full litany of alleged abuses at the Weinstein Company detailed in the suit as "egregious violations of New York's civil rights, human rights and business laws".
The New York attorney general says that Robert Weinstein, who was aware of his brother's sexual misconduct, allowed Harvey to create a hostile work environment and engage in sexual misconduct, for which he was responsible for preventing.
The suit comes four months after the Hollywood mogul's career ended in disgrace over mushrooming allegations of sexual harassment, assault and rape levelled against the producer by more than 100 women.
The lawsuit states that any sale of the company "must ensure that victims will be compensated".
He denies allegations of non consensual sex.
The suit charges that the human resources department at the Weinstein Company was completely corrupt.
"Every New Yorker has a right to a workplace free of sexual harassment, intimidation, and fear", said Attorney General Eric Schneiderman.
A third group were were forced to facilitate Weinstein's sexual conquests, and to follow through on HW's promise of employment opportunities to women who met with Weinstein's favor.
Weinstein, the disgraced movie mogul, was ousted from his role at The Weinstein Company previous year after numerous reports of sexual misconduct. The suit alleges that the COO failed to protect the company's employees.
But when she arrived Weinstein allegedly appeared naked under a bathrobe and asked the employee for a massage.
Telephone and email messages seeking comment from Weinstein were not immediately returned.