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.