Company objects to partial settlement in 38 Studios lawsuit
By: The Associated Press
PROVIDENCE, R.I. – The lawsuit involving video game company 38 Studios is hitting a bump in the road when the company that was acting as financial adviser to the state of Rhode Island in its $75 million deal, is objecting to a partial settlement
First Southwest on Monday filed an objection to a proposed $25.6 million settlement announced last week with Wells Fargo Securities and Barclays Capital Inc.
Southwest’s filing takes issue with a state law passed to encourage settlements in the case.
Officials at Southwest say it has the effect of strong-arming others to pay for the state’s mistakes.
Former Red Sox pitcher Curt Schilling started 38 Studios.
It failed less than two years after getting the loan guarantee.
A state superior court judge has scheduled a hearing about the settlement proposal for Sept. 6.
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