According to the Associated Press, the Rhode Island Senate unanimously approved a bill this week that encourages out-of-court settlements in the 38 Studios lawsuit.
Governor Lincoln Chafee’s office introduced a new bill earlier this month to encourage out-of-court settlements to resolve the $75 million debt cause by a loan which was given to the now-defunct 38 Studios. The state filed the lawsuit in 2012 against 38 Studios executives and members of the Rhode Island Economic Corporation (now known as the Rhode Island Commerce Corp.) for failing to make payments for the $75 million loan guarantee provided by the state in 2010.
Last week, Rhode Island Commerce Corp. Attorney Max Wistow, urged a House committee to pass the bill because defendants’ insurance policies could pay defense costs outside of the policy limits, resulting in recoverable resources “being eaten up very rapidly.”
“Any settlement in this case is going to be a benefit to the taxpayers,” Wistow told the R.I. House Judiciary Committee.