Rhode Island reaches $25.6M deal over Schilling’s 38 Studios

PROVIDENCE, R.I. – Rhode Island has reached a $25.6 million settlement with two of the financial backers it sued over a disastrous deal with former Red Sox pitcher Curt Schilling’s 38 Studios video game company.

The state’s Commerce Corp. announced Tuesday that it has agreed to the proposed settlement with Wells Fargo Securities and Barclays Capital Inc.

The settlement was filed Tuesday in Rhode Island Superior Court and is contingent on the court’s approval.

The company founded by Schilling was given a state-backed loan, and taxpayers were left on the hook when it collapsed in 2012.

The state says it’s still in litigation with First Southwest Co. and Schilling.

The new settlement brings to $42 million the amount the state has recovered from parties involved in the deal.

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