Agency settles SEC suit over Schilling’s 38 Studios deal

By: The Associated Press

news@abc6.com

PROVIDENCE, R.I. – The Rhode Island Commerce Corporation says it has settled a lawsuit brought against it by the U.S. Securities and Exchange Commission over the state’s failed $75 million deal with former Boston Red Sox pitcher Curt Schilling’s video game company.

The economic development agency said Wednesday it agreed to pay $50,000 and in the future, not violate the law it was accused of violating.

The suit accused the agency and Wells Fargo of making misleading statements about bonds used to fund the deal. The agency didn’t admit or deny the allegations.

If approved in U.S. District Court, the settlement would mark the end of all pending litigation related to 38 Studios.

Schilling’s company moved from Massachusetts to Rhode Island in 2010 in exchange for a $75 state million loan guarantee, then went bankrupt. 

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