Corso agrees to pay $45k in 38 Studios bankruptcy case

By: Rebecca Turco

Email: rturco@abc6.com

PROVIDENCE – Providence-based lawyer Michael Corso has agreed to pay $45,000 to the trustee in the 38 Studios bankruptcy case.

Corso was paid $232,800 in the 90 days before the company filed for bankruptcy, according to court documents.  

He was working for 38 Studios as the state negotiated a $75 million loan for Curt Schilling’s video game company. He advised the state’s Economic Development Corporation in the planning.

Neither party admitted liability in the settlement.

In a July 2014 deposition, Corso had plead the fifth to almost every question about his involvement in 38 Studios, including whether then-House Majority Leader Gordon Fox was compensated for his part in the deal.

The settlement motion was filed Wednesday. If the court approves it, Corso will have three days to pay the trustee.

Corso’s lawyer, Michael Lepizzera, Jr., released this statement to ABC6 News:

“With respect to the settlement with the 38 Studios bankruptcy trustee, this case has been settled by Mr. Corso based purely on economics. As we viewed the case, the legal fees along with the travel and lodging expenses for Mr. Corso and I to travel to Delaware to litigate this case would have likely exceeded the proposed settlement amount.  Therefore, despite the valid legal defenses we had in response to the Trustee’s Complaint, it made all the sense in the world to resolve the case. Assuming the settlement is approved by the court, it effectively closes out another chapter for Mr. Corso in what has turned out to be a horrific financial transaction, not only for fellow Rhode Islanders, but for Mr. Corso as well.

“As the settlement expressly points out, neither party admits liability and, in fact, each party expressly denies liability.  Mr. Corso stands by that provision in the settlement.

“Finally, as I have pointed out before, many have been focusing their inquiry on how much Mr. Corso may have earned for doing a job he was hired to do on behalf of his client instead of also asking whether Mr. Corso suffered any financial losses in this 38 Studios transaction.  Let me answer that question that no one is asking:  Mr. Corso and his companies incurred millions of dollars in liabilities as a result of this transaction which far exceed any monies he may have received.  As Rhode Islanders will inevitably discover as part of their review of the 38 Studios deal, they are not the only ones who suffered significant financial losses in this transaction.”

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