This year's Nobel Prize for Literature is in jeopardy over a sex scandal

People gather outside the Swedish Academy in Stockholm to show their support for former Permanent Secretary Sara Danius on April 19, 2018.

(CNN)The institution that awards the Nobel Prize for Literature is mired in a sexual and financial scandal so deep that this year's prize may be postponed for the first time in more than seven decades.

In recent weeks, six members of the Swedish Academy -- one of Sweden's most highly respected cultural bodies -- have stepped down, including the head of the institution, Sara Danius. The flurry of withdrawals is potentially catastrophic for the 230-year-old academy, whose members, elected by secret ballot, must be approved by the King and traditionally hold their positions for life.
With just 10 remaining active members, the group is scheduled to meet Thursday to discuss the fate of this year's literature prize, even though historically, 12 members have been required for a quorum.
    In 1943 -- the last time the literature prize was postponed -- it was the height of World War II and the Nazis ruled much of the European continent.
    This time, the crisis centers on Jean-Claude Arnault, a French photographer and husband of poet Katarina Frostenson, one of the six academy members to step down. Arnault, a leading cultural figure in Sweden, is facing multiple allegations of sexual assault and harassment, first reported in the Swedish newspaper Dagens Nyheter late last year. In an emailed statement to CNN, Arnault's lawyer, Bjorn Hurtig, said his client denies all the allegations.
    The academy is also under fire for contravening its own conflict of interest regulations by providing funding to the Kulturplats Forum, a cultural center run by Arnault and Frostenson.
    Guests attend the Swedish Academy's annual meeting on December 20, 2017 at the Old Stock Exchange building in Stockholm.

    'Unwanted intimacy'

    The scandal, reaching to the heart of a globally respected institution and rooted in a country hailed as a model for gender equality, has sent shockwaves around the world.
    Last November, as the #MeToo movement gained momentum, 18 women came forward to accuse a man, later identified as Arnault, of a range of sexual misconduct between 1996 and 2017. Two of the 18, Gabriella Hakansson and Elise Karlsson, spoke on the record. CNN has not independently verified the women's claims.
    The following day, the academy's permanent secretary Sara Danius said that the institution had cut all ties with Arnault in light of the reported allegations and additional claims that some academy staff and members' relatives had experienced "unwanted intimacy" at the hands of Arnault.
    Speaking on November 23, 2017, Sara Danius tells the media that the Academy had cut ties with Arnault.
    An independent investigation carried out by a Swedish law firm in the following months