Judge approves another settlement in 38 Studios lawsuit
PROVIDENCE, R.I. — A Rhode Island Superior Court judge on Tuesday approved a partial $25.6 million settlement in the lawsuit over the state’s disastrous deal with 38 Studios, the video game company started by former Red Sox pitcher Curt Schilling.
Wells Fargo Securities and Barclays Capital Inc. agreed to settle to get out of the lawsuit brought against them and others when 38 Studios failed after receiving a $75 million state loan guarantee. The settlement, approved by Judge Michael Silverstein, brings the amount the state has recovered in the lawsuit to $42 million.
The lawsuit filed by Rhode Island’s economic development agency is still pending against Schilling and other 38 Studios officials, as well as First Southwest, which acted as Rhode Island’s financial adviser in the deal. First Southwest had argued against the latest settlement, saying it relied on a state law that was unconstitutional and unfair. The 38 Studios executives joined that argument.
Silverstein on Tuesday said he had already ruled on similar objections during two previous settlements in the case and rejected the argument.