Judge approves Rhode Island settlement over 38 Studios

Judge approves Rhode Island settlement over 38 Studios

PROVIDENCE, R.I. — A federal judge has approved a settlement in a lawsuit brought by the U.S. Securities and Exchange Commission over Rhode Island’s failed $75 million deal with the videogame company owned by former Boston Red Sox pitcher Curt Schilling.

Under the settlement approved Monday by U.S. District Judge Jack McConnell, the state’s economic development agency will pay a $50,000 penalty. It did not admit wrongdoing.

Schilling’s 38 Studios moved from Massachusetts to Rhode Island for a $75 million state loan guarantee, then went bankrupt.

The SEC lawsuit alleged the state agency and Wells Fargo Securities made misleading statements about bonds used to fund the deal.

The lawsuit is still pending against Wells Fargo and one of its employees. They have disputed the allegations and said no investors were harmed.

The Associated Press

Canadian Press

Be Among The First To Know

Sign up for a free account today, and receive top headlines in your inbox Monday to Saturday.

Sign Up with google Sign Up with facebook

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Reset your password

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

A link has been emailed to you - check your inbox.



Don't have an account? Click here to sign up
Pop-up banner image