Rhode Island reaches $25.6M deal over Schilling's 38 Studios
PROVIDENCE, R.I. (AP) Rhode Island has reached a $25.6 million settlement with two of the financial backers it sued over a disastrous deal with former Red Sox pitcher Curt Schilling's 38 Studios video game company.
The state's Commerce Corp. announced Tuesday that it has agreed to the proposed settlement with Wells Fargo Securities and Barclays Capital Inc.
The settlement was filed Tuesday in Rhode Island Superior Court and is contingent on the court's approval.
The lawsuit filed by the state accused 38 Studios executives and several financial backers of fraud and negligence.
The company founded by Schilling was given a state-backed loan, and taxpayers were left on the hook for about $116 million when it collapsed in 2012.
The state says it's still in litigation with First Southwest Co. and Schilling.