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McGowan was 23 years old when she reached the previously undisclosed settlement with Weinstein, following what the Times described as "an episode in a hotel room during the Sundance Film Festival."
The legal document, reviewed by the Times, said that the settlement was "not to be construed as an admission" of harassment by Weinstein, but rather intended to "avoid litigation and buy peace."
In the same Times report, actress Ashley Judd accused Weinstein of inviting her to his hotel room, appearing in a bathrobe, offering her a massage, and asking her if she wanted to watch him take a shower.
In 1997, McGowan was between work on the horror film "Scream" - which was produced by Weinstein's brother, Bob Weinstein, and his Dimension Films studio - and The WB show "Charmed."
As the cofounder of Miramax Films and The Weinstein Company, Harvey Weinstein has had a huge influence on Hollywood and the entertainment industry. Six of the films he has produced have won the Academy Award for best picture, including "Shakespeare in Love" and "The Lord of the Rings: The Return of the King."
McGowan declined to comment on the Times story.
Weinstein has since provided the Times with a statement, in which he said he would take a "leave of absence" from The Weinstein Company in the wake of the allegations.