Rhode Island Commerce Corporation Reaches $12.5 Million Settlement With Certain Defendants in Pending 38 Studios Lawsuit

PROVIDENCE, RI – The Rhode Island Commerce Corporation has agreed to a $12.5 million proposed settlement with Adler, Pollack & Sheehan P.C., Robert I. Stoltzman, J. Michael Saul, and Keith W. Stokes in the 38 Studios litigation.  The settlement was filed in Rhode Island Superior Court today and is contingent upon court approval.

In December 2014, the Commerce Corporation, after considering the extent of the defendants’ insurance coverage, made a demand of these four defendants that they settle for $12.5 million.  This settlement reflects these defendants’ agreement to that demand.  The Commerce Corporation and the settling defendants are mindful of the inherent uncertainty of litigation and the financial costs associated with it, and they have agreed that this settlement is reasonable under the circumstances.  The Corporation previously settled claims against Antonio Afonso, Jr. and Moses Afonso Ryan Ltd. for $4.37 million in June 2014.

The Corporation’s litigation is still going forward against other defendants who are not included in prior settlements.  The remaining defendants are Wells Fargo Securities, LLC, Barclays Capital Inc., First Southwest Company, Starr Indemnity and Liability Company, Curt Schilling, Thomas Zaccagnino, Richard Wester, and Jennifer MacLean.

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