First Southwest

Ian Donnis / RIPR

Remember Rhode Island’s disastrous deal with former Red Sox pitcher Curt Schilling? The state invested $75 million of taxpayer dollars in Schilling’s video game company 38 Studios and lost it all before a lawsuit clawed back most of the money. It was one of the worst financial decisions in Rhode Island history. Yet the company that served as the state’s financial adviser on the deal has continued doing business throughout the state.

The state has reached a $16 million settlement with Hilltop Securities (formerly First Southwest), the last defendant in Rhode Island's lawsuit over 38 Studios.

If the deal wins court approval, there will not be a trial stemming from the state's lawsuit over the 2012 failure of the video game company -- and no testimony from key figures in what proved to be an expensive mistake for the state and its citizens.

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.