Attorney Max Wistow, the lawyer who is representing the Economic Development Corp. in its lawsuit against 38 Studios executives and others involved in the deal, said yesterday before a Rhode Island Senate committee that money that could be recouped by the state is instead being spent on the ongoing court battle by multiple parties. He also claimed that 11 of the defendants in the case have "insurance policies that pay defense costs out of the policy limits."
"The resources to recover in the lawsuit are every day diminishing," he told Rhode Island lawmakers.
Wistow was testifying before lawmakers in a bid to urge them to pass a bill that would make it easier to settle the lawsuit against former Red Sox pitcher and 38 Studios founder, former 38 studios executives, former EDC executives, and other involved in the failed $75 million investment deal.
The bill under consideration in the General Assembly would shield any party that settles with the state from a lawsuit filed by a co-defendant over damages that co-defendant is found liable for.
Wistow had said in the past that some of those involved in the case were talking to him about settling out of court. In his testimony he told lawmakers that some of the defendants are "very eager" to see the legislation passed.
The committee has forwarded the bill to the full Senate after a unanimous vote.
Source: The Republic