The Rhode Island General Assembly introduced a bill on Wednesday, January 8 which would resolve the $75 million debut incurred through a loan given to 38 Studios.
The bill was submitted “at the request” of Governor Lincoln Chafee’s administration, and covers “court-approved settlements” stating: “a person, corporation, or other entity who has resolved its liability to the Rhode Island Commerce Corporation in a judicially approved good faith settlement is not liable for claims for contribution or equitable indemnity regarding matters addressed in the settlement.”
According to GamePolitics per the Providence Journal, the bill defines a “good faith settlement” which doesn’t “exhibit collusion, fraud, dishonesty, or other wrongful or tortious conduct intended to prejudice the non- settling tortfeasor(s), irrespective of the settling or non-settling tortfeasors’ proportionate share of liability.”
Similar proposals were used by the state’s Senate during similar settlements in the 1990s and over the Station Nightclub fire in 2003.
“The bill is specific only to the 38 Studios lawsuit and is done to encourage a settlement,” said House Judiciary Chairwoman Edith Ajello (D-Providence), in a statement. “The bill makes it clear that the credit to the non-settling defendants is limited to the amount of money paid by the settling defendants. It eliminates the uncertainty of determining what the percentage of fault is among all the defendants, which may not be determined for many years in the event of a jury trial.”
In September, the US Securities and Exchange Commission (SEC) began an investigation into the $75 million loan handed to 38 Studios by the state of Rhode Island’s Economic Development Corporation (EDC), which as of January 1 was renamed the Rhode Island Commerce Corporation (RICC).
Last week, it was revealed the SEC subpoenaed the RICC for more information pertaining to the investment and the ongoing lawsuit during December.
The whole matter has been drawn out since 2012, so if you missed anything pertaining to the against 38 Studios lawsuit, be sure to look over our hub.