A Rhode Island judge has approved the first settlement in the lawsuit brought by the state’s economic development corp. against individuals and companies involved in brokering a $75 million bond to fund former Red Sox pitcher Curt Schilling's 38 Studios.
In a 35-page ruling, Rhode Island Superior Court Judge Michael Silverstein approved a $4.4 million settlement between the agency formerly known as the Economic Development Corp. and lawyer Antonio Afonso Jr. and his firm, Moses Afonso Ryan. Afonso and his firm were among the 14 defendants named in the EDC’s complaint, which alleges fraud, negligence and breach of fiduciary duty, etc.
Moses Afonso worked on the sale of the bonds that financed that deal.
In the same ruling Judge Silverstein dismissed a separate lawsuit brought by the EDC’s former deputy director, Michael Saul, alleging legal malpractice. That suit named Afonso and his firm as well as Robert Stolzman and his firm, Adler Pollock & Sheehan, which served as EDC’s general counsel at the time.
Several parties, including Saul and former EDC Executive Director Keith Stokes, had objected to this settlement, claiming that it violated due process rights and that the new statute under which it was struck is unconstitutional.
The judge ruled Tuesday that the law is legal under the Rhode Island constitution.