First Southwest objects to deal over Schilling's 38 Studios
PROVIDENCE, R.I. (AP) The company that acted as financial adviser to the state of Rhode Island in its $75 million deal with video game company 38 Studios is objecting to a partial settlement in a lawsuit brought over the deal.
38 Studios was started by former Red Sox pitcher Curt Schilling. It failed less than two years after getting the loan guarantee.
First Southwest filed an objection Monday to a proposed $25.6 million settlement announced last week with Wells Fargo Securities and Barclays Capital Inc.
First Southwest's filing takes issue with a state law passed to encourage settlements in the case. First Southwest says it has the effect of strong-arming others to pay for the state's mistakes.
A state Superior Court judge has scheduled a hearing about the settlement proposal for Sept. 6.