Judge approves Rhode Island settlement over 38 Studios

AP News
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Posted: Apr 03, 2017 10:56 AM

PROVIDENCE, R.I. (AP) — A federal judge has approved a settlement in a lawsuit brought by the U.S. Securities and Exchange Commission over Rhode Island's failed $75 million deal with the videogame company owned by former Boston Red Sox pitcher Curt Schilling.

Under the settlement approved Monday by U.S. District Judge Jack McConnell, the state's economic development agency will pay a $50,000 penalty. It did not admit wrongdoing.

Schilling's 38 Studios moved from Massachusetts to Rhode Island for a $75 million state loan guarantee, then went bankrupt.

The SEC lawsuit alleged the state agency and Wells Fargo Securities made misleading statements about bonds used to fund the deal.

The lawsuit is still pending against Wells Fargo and one of its employees. They have disputed the allegations and said no investors were harmed.