38 Studios Settlement Reached: State Recoups More Losses from Curt Schilling's Company

PROVIDENCE, RI — The state has recouped almost 70 percent of its losses on 38 Studios, former Red Sox pitcher Curt Schilling's defunct video game company.

The Rhode Island Commerce Corporation announced today it has agreed to a $16 million proposed settlement with the last holdout, Hilltop Securities Inc. (formerly First Southwest Company) in the 38 Studios litigation. The settlement was filed in Rhode Island Superior Court today and is contingent upon court approval.

According to the press release, if the Court approves the settlement, the Corporation will have obtained settlements totaling approximately $61 million in the 38 Studios litigation, nearly 70 percent of the approximately $88 million state moral obligation on the 38 Studios bonds for both past and future appropriations.

• Related Story: 38 Studios: RI Settles with Curt Schilling, Others for $2.5 Million

The Corporation previously settled claims against Curt Schilling, Thomas Zaccagnino, Richard Wester, Jennifer MacLean, and their insurer, Starr Indemnity and Liability Company for $2.5 million in September 2016; Wells Fargo Securities, LLC and Barclays Capital Inc. for $25.625 million in August 2016; Antonio Afonso, Jr. and Moses Afonso Ryan Ltd. for $4.4 million in June 2014; and Adler, Pollock & Sheehan P.C., Robert I. Stolzman, J. Michael Saul, and Keith W. Stokes for $12.5 million in August 2015.

But Gov. Gina Raimondo said today the questions about the deal still need to be aired.

"I am pleased with the proposed settlement of $16 million from First Southwest,"she said. "But we cannot rest on monetary recovery alone. If the Court approves this settlement, the civil case will end and I will immediately petition the Court for the release of all materials associated with the grand jury investigation of 38 Studios. Rhode Islanders deserve to have access to all of the information that is known. Complete transparency is the best way to ensure that such a disastrous deal never happens again."