Judge Approves 38 Studios Settlement: Raimondo Now Will Petition for Grand Jury Documents

EAST PROVIDENCE, RI—More documents could soon be released in connections with 38 Studios, former Red Sox pitcher Curt Schilling's failed video game company.

State police Col. Ann Assumpico said today she has directed state police to review all the 38 Studios documents in the state police's possession, as long as they're not part of the grand jury's criminal investigation. As soon as the review is finished, those documents will be made public, she said.

The development came after news the civil case has now been resolved. Last week, the Rhode Island Commerce Corporation announced it had agreed to a $16 million settlement with Hilltop Securities Inc. (formerly First Southwest Company) in the 38 Studios litigation. The deal was pending court approval.

Judge Michael A. Silverstein this morning approved the final settlement for $16 million with Hillside.

The civil case was brought to recover taxpayers' money. The General Assembly had approved a $75 million loan for 38 Studios when Schilling agreed to relocate the company to Rhode Island. But then 38 Studios went bankrupt and defaulted on the loan, causing a political uproar, particularly after some lawmakers said they had no idea they were voting on a loan that effectively benefited only one company.

The state undertook a criminal investigation, but no one was charged.

In all, the state obtained settlements totaling approximately $61 million of the $88 million bond obligation.

Assumpico said she believes all the documents should be released.

Also today, Gov. Gina Raimondo said she will follow through on a pledge. Next week, she will petition the court to release the Grand Jury documents.

"Rhode Islanders were hurt by 38 Studios," she said. "I've fought hard to recover as much taxpayer money as possible and am pleased that Judge Silverstein has approved our last settlement. Now that the civil case and criminal case is closed, we should make all the documents available to the public and give the people of our state closure."