RI Gov. Lincoln Chafee Signs 38 Studios Settlement Bill Into Law

Rhode Island Governor Lincoln Chafee has quickly signed into law a bill that was passed yesterday in the RI House (and earlier in the week in the RI Senate) that will make it easier for the state to settle its lawsuit with 38 Studios and principles involved in the $75 million loan guarantee that enticed Curt Schilling to move his game development studio to Providence in 2010.

The Independent-turned-Democratic governor signed the bill late Thursday. The new law will shield any defendant that settles in the case from lawsuits from co-defendants over damages for which that defendant is found liable.

The former Economic Development Corp. sued former Red Sox pitcher Curt Schilling and others after 38 Studios went bankrupt. The agency approved a $75 million loan guarantee for the company, which it later defaulted on, leaving the state with an estimated debt of somewhere between $90 – $110 million.

The attorney handling the case for the agency formerly known as the EDC claims that this law will maximize just how much the state can recover from the defendants in the case because all parties will no longer be spending it on fighting the legal battle.

We'll have more on this story as it develops.

Source: Boston.com

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