Rhode Island Reaches $25.6 Million Agreement Over 38 Studios

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Rhode Island has reached a $25.6 million settlement with two of the financial backers it sued over a disastrous deal with Curt Schilling's 38 Studios video game company.

The state's Commerce Corp. announced Tuesday it has agreed to the proposed settlement with Wells Fargo Securities and Barclays Capital Inc.

The settlement was filed Tuesday in Rhode Island Superior Court and is contingent upon the court's approval.

The lawsuit filed by the state accused 38 Studios executives and several financial backers of fraud and negligence.

The company founded by Schilling, the former Red Sox pitcher, was given a state-backed loan and taxpayers were left on the hook for about $116 million when it collapsed in 2012.

The state says it's still in litigation with First Southwest Co. and Schilling.

Copyright AP - Associated Press
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