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.
Additionally, Silverstein also said that a law designed to produce legal settlements in the protracted lawsuit that was approved by the General Assembly passes constitutional muster. In his opinion, Silverstein a similar measure adopted by the Assembly in 1993 in the aftermath of the Rhode Island credit union crash. That law was upheld by the Rhode Island Supreme Court.
Silverstein called the 1993 law "practically identical to the 38 Studios Settlement Act."
The state's lawsuits against other financial companies and law firms that advised the state on the 38 Studios deal are pending.