Judge approves another settlement in 38 Studios lawsuit

BY foxsports • September 6, 2016

PROVIDENCE, R.I. (AP) A Rhode Island Superior Court judge has 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 when 38 Studios failed after receiving a $75 million state loan guarantee. The settlement approved Tuesday brings the amount the state has recovered to $42 million.

The lawsuit is still pending against Schilling and other 38 Studios executives, as well as First Southwest, which acted as Rhode Island's financial adviser in the deal.

A mediator told The Associated Press after the hearing that he is in active settlement discussions with the 38 Studios defendants, which include Schilling.