Barclays

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.

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.