Settlement Stalled; Another Lawsuit Filed over "38 Studios" in R - ABC6 - Providence, RI and New Bedford, MA News, Weather


Settlement Stalled; Another Lawsuit Filed over "38 Studios" in Rhode Island

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The legal battle over “38 Studios” is getting as intense as the games themselves.

Lawyers gathered in Providence Superior Court arguing various sides of the case.

The bond counsel which helped the state make the ill fated $75 million dollar loan to Curt Schilling, now wants to settle by paying Rhode Island $4–and–a–half million dollars.

"My clients will have little if any insurance money to continue defending them in this case and they won't even have enough money to make some sort of a modest settlement or judgment,” said attorney David Grossbaum, attorney for EDC bond counsel Moses Afonso, Ltd..

The state stands to lose 100 million dollars on “38 Studios,” so advocates say recovering four-and-a-half million is a start.

ABC6 Chief Political Reporter Mark Curtis said, "Also in court, lawyers revealed that over one million pages of documents have now been filed in all of the '38 Studios' lawsuits."

And that now includes a legal malpractice lawsuit filed on behalf of former EDC Executive Director Keith Stokes, and his assistant J. Michael Saul who shepherded the "38 Studios" deal.

Attorneys for the state are furious.

"I consider it to be an abuse of process, frankly. Because I don’t think it was filed with the intent to recover anything. I think it was filed with the intent to frustrate this settlement," said attorney Max Wistow, hired by the State of Rhode Island to try to recover any assets.

Attorneys for the former EDC employees were just as angry.

"Your honor I can say that I am nothing less than outraged at the insinuations being made," said Bruce Gladstone, an attorney for former EDC employee J. Michael Saul.

Over a dozen lawyers were in court - representing all sides of the “38 Studios” deal - a case that may drag on for years.

The judge may rule on the proposed settlement in the next two weeks.
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