Parties affected by the possibility of an out-of-court settlement of the Rhode Island vs 38 Studios suit seem to be coming around to the idea, which would wrap the whole matter up much more expeditiously than at trial.
Speaking to Boston.com, Rhode Island Commerce Corporation lawyer Max Wistow said he’s already had “general discussions” over the matter.
Although Wistow didn’t name names, his follow-up comment suggests the discussions may have gathered enough positive responses to push ahead with settlements.
“There’s been enough discussion to make it clearly worthwhile to have the legislation passed,” he said.
Rhode Island funded 38 Studios to the tune of $75 million in 2010, and agreed to honour the bonds when the company closed, although it has considered getting out of it. However, with so much cash down the drain, the state then filed suit against 38 Studios founder Curt Schilling and 13 other defendants, including law firms and investment banks. The suit seeks repayment of the bonds and hefty damages, claiming Rhode Island was misled when backing the developer.
RI governor Lincoln Chafee, an outspoken opponent of the original loan, is only “interested in recapturing the money the state is on the line for”, a presentative said, declining to comment on the negotiations.
Settlements may prove significantly cheaper to parties on both sides as a jury trial could take years to resolve.
Just by-the-by, Rhode Island and Chafee have come under fire from Schilling and other members of 38 Studios, alleging the state withdrew support sooner than necessary. It’s worthwhile checking up on the whole sorry saga.