Weinstein, 68, was convicted last year and jailed for 23 years for rape and sexual assault.
The payout for his victims will come from the liquidation of the Weinstein Co, which filed for bankruptcy in 2018.
The judge overruled an objection from some accusers looking to pursue appeals outside of bankruptcy court.
Judge Mary Walrath said without the settlement, the plaintiffs would get "minimal, if any, recovery."
The Weinstein Co was set up as an independent film studio with the disgraced Hollywood mogul one of its co-founders.
The company collapsed in late 2017, following widespread claims of sexual misconduct against Weinstein, who was convicted of sexually assaulting a former production assistant and raping an actress.
The US judge said that 83% of sexual misconduct claimants in the bankruptcy "have expressed very loudly that they want closure through acceptance of this plan, that they do not seek to have to go through any further litigation in order to receive some recovery, some possible recompense... although it's clear that money will never give them that".
The $17m fund will be divided among more than 50 claimants, with the most serious allegations resulting in payouts of $500,000 or more.
The settlement was put to a vote of Weinstein's accusers, with 39 voting in favour and eight opposed.