Judge to consider another settlement in 38 Studios lawsuit

Markets Associated Press

A Rhode Island Superior Court judge will consider whether to approve a partial $25.6 million settlement in the lawsuit over the state's disastrous deal with 38 Studios, the video game company started by former Red Sox pitcher Curt Schilling.

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Wells Fargo Securities and Barclays Capital Inc. have agreed to pay the money to get out of the lawsuit brought when 38 Studios failed less than two years after receiving a $75 million state loan guarantee.

If approved, the settlement would bring the amount the state has recovered to $42 million.

The lawsuit is still pending against Schilling and other 38 Studios executives, as well as First Southwest, which acted as Rhode Island's financial adviser in the deal.

First Southwest has objected to the settlement.