BOSTON — The Rhode Island Commerce Corp. has agreed to a $12.5 million proposed settlement with four defendants in the state's lawsuit related to defunct video-game company 38 Studios, the corporation announced Aug. 7.
The corporation had demanded that amount last December.
Settling were law firm Adler, Pollock & Sheehan PC, Robert Stoltzman, Michael Saul and Keith W. Stokes in the 38 Studios litigation. The parties filed the settlement in Rhode Island Superior Court, which must approve it.
The Commerce Corp.'s predecessor, the Rhode Island Economic Development Corp., provided a $75 million loan - backed by the state's moral obligation - in 2010 to 38 Studios, owned by former Boston Red Sox pitcher Curt Schilling. The company folded two years later, leaving taxpayers on the hook and requiring Rhode Island to make annual payments toward the debt.
Adler, Pollock & Sheehan, and Stoltzman were legal advisors to the EDC. Stokes is the former RIEDC executive director and Saul a former top EDC official.
"The Commerce Corp. and the settling defendants are mindful of the inherent uncertainty of litigation and the financial costs associated with it, and they have agreed that this settlement is reasonable under the circumstances," the corporation said a statement. It also settled claims against Antonio Afonso Jr. and Moses Afonso Ryan Ltd. for $4.37 million in June 2014.
The Corporation's litigation is still proceeding against other defendants who are not included in prior settlements.
They are Schilling, Wells Fargo Securities LLC, Barclays Capital Inc., First Southwest Co., Starr Indemnity and Liability Co., Thomas Zaccagnino, Richard Wester and Jennifer MacLean.
