Rhode Island Superior Court Judge Michael Silverstein has upheld an initial legal settlement in Gov. Lincoln Chafee’s 38 Studios lawsuit over the $75 million state loan guarantee granted to the failed video game company started by Curt Schilling, the former Boston Red Sox pitcher.
In an opinion released this afternoon, Silverstein approved a $4.4 million settlement reached with the Providence law firm of Moses, Alfonso and Ryan, a firm that advised the state on bonds of the ill-fated loan program.
A Superior Court judge is scheduled Tuesday to consider the first settlement growing out of the state’s lawsuit over 38 Studios. The settlement calls for the state to get a payment of $4.3 million.
After 38 Studios went bankrupt in 2012, the state sued 14 defendants to try to cut down the roughly $90 million owed by taxpayers. The first proposed settlement in the case was announced late last month. It involves the law firm of Moses Afonso Ryan, which served as bond counsel for the ill-fated 38 Studios project.
The auctioning of intellectual property from defunct video game maker 38 studios resulted in the sale of two of the five lots up for bid. The assets were part of the video game company owned by baseball legend Curt Schilling.
The two lots going to the highest bidder included the games “Rise of Nations” and “Rise of Legends” and all of their intellectual property. The other lot sold held the trademark for Big Huge Games, a Maryland-based video game company owned by 38 Studios.
Intellectual property rights for 38 Studios, the failed video game that left Rhode Island taxpayers on the hook for $90 million, were slated to hit the auction block Wednesday. Nick Jimenez, executive vice president with Heritage Global Auctions, says via email there will be "more to report after the sales process is completed in the coming days." In the interim, an update on related developments:
The state’s lawsuit over failed video game company 38 Studios will move forward. Superior Court Judge Michael Silverstein dismissed some of the counts, but allowed key parts of the state’s lawsuit to move ahead.
Rhode Island’s lawsuit over failed video game company 38 Studios will move forward. Superior Court judge Michael Silverstein dismissed some of the counts, but allows key parts of the state’s lawsuit to move ahead.
Former Red Sox star Curt Schilling says stress from 38 Studios’ business problems was part of why he suffered a heart attack in 2011. Schilling revealed the health problem in an interview with the Boston Sunday Globe.
Schilling tells the Globe he experienced chest pains while watching his wife run in the New York Marathon in November 2011. That was seven months before 38 Studios went bankrupt, leaving Rhode Island taxpayers on the hook for close to 100 million dollars. Schilling says he was treated after returning to Boston.