Report: Rhode Island Economic Development Agency to Hold Meeting Related to 38 Studios Litigation Next Week

The Rhode Island Economic Development Agency (formerly the Economic Development Corp.) has scheduled a special meeting about its lawsuit against 38 Studios next Monday, according to the Associated Press.

The executive session scheduled for Monday will be to discuss issues related to the ongoing litigation against former Red Sox pitcher Curt Schilling and other parties related to the $75 million loan guarantee gone awry. The EDC sued the Schilling and others after 38 Studios went bankrupt in 2012, alleging that its board was misled into approving a $75 million loan guarantee for the company in 2010. The state is on the hook for $90 million in loan payments, penalties and interests.

Earlier in the current legislative session, the Rhode Island General Assembly passed legislation designed to encourage out-of-court settlements with principles named as defendants in the lawsuit including Schilling, former 38 Studios executives, former EDC employees, and employees from a number of financial institutions including Wells Fargo..

Lead EDC attorney Max Wistow said that the law would help maximize any financial recovery. Wistow declined comment on any settlement talks that might be ongoing.

Source: Associated Press.

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