Judge approves 1st settlement in 38 Studios case

Published on NewsOK Modified: July 22, 2014 at 3:35 pm •  Published: July 22, 2014
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PROVIDENCE, R.I. (AP) — A judge on Tuesday approved the first settlement in the lawsuit brought by the state's economic development agency over the collapsed video game company founded by former Red Sox pitcher Curt Schilling.

In a 35-page ruling, Rhode Island Superior Court Judge Michael Silverstein approved a $4.4 million settlement between the agency formerly known as the Economic Development Corp. and lawyer Antonio Afonso Jr. and his firm, Moses Afonso Ryan. Several parties to the suit had objected.

Afonso and the firm were among the 14 defendants named in the EDC's complaint, which alleges fraud, negligence and breach of fiduciary duty, among other things. The EDC's board in 2010 approved a $75 million loan guarantee for 38 Studios, which later filed for bankruptcy.

Moses Afonso worked on the sale of the bonds that financed that deal.

The state remains responsible for some $89 million related to the transaction.

In the same ruling, Silverstein also dismissed a separate lawsuit brought by the EDC's former deputy director, Michael Saul, alleging legal malpractice. That suit named Afonso and his firm as well as Robert Stolzman and his firm, Adler Pollock & Sheehan, which served as EDC's general counsel at the time. Stolzman and Adler Pollock are also named in the EDC's suit.

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