Wells Fargo

First Southwest Company, one of the financial institutions involved in the ill-fated 38 Studios deal, is objecting to the state’s recent settlement agreement with two other banks in the ongoing lawsuit against actors in the video game fiasco.

Lawyers for First Southwest filed a memorandum in Rhode Island Superior Court objecting to the settlement with Barclays Capital and Wells Fargo Securities, which, if approved by the court, would yield just under $26 million in payments to the state.

John Bender / RIPR

The US Securities & Exchange Commission on Monday announced that it has charged Wells Fargo Securities and the state agency formerly known as the Economic Development Corporation with defrauding investors in the municipal bond offering used to finance 38 Studios in Rhode Island.


Kristin Gourlay / RIPR

The 38 Studios lawsuit disclosures have once again cast a cloud over the Rhode Island Statehouse. RIPR political analyst Scott MacKay wonders when Rhode Islanders will finally be fed up enough to bring change to Smith Hill.

Ian Donnis / RIPR

During a closed session on June 9, 2010, the board of Rhode Island's Economic Development Corporation received a briefing on what then-Governor Don Carcieri suggested was a "fairly significant transaction" that had presented itself to the EDC.

Wikimedia Commons

Rhode Island state government has asked a state Superior Court judge to open to the public records related to the state’s civil suit against several financial companies and law firms in the long-running case to recover damages from those involved in the ill-fated 38 Studios bond deal.

    

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.

file / RIPR

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.

(Read the judge's 98-page decision here.)

When video game maker 38 Studios went belly up after receiving a $75 million state loan guaranty, it left taxpayers in the lurch for roughly $100 million.