Business

Judge approves 1st settlement in 38 Studios case

PROVIDENCE — A judge on Tuesday approved the first settlement in the lawsuit brought by the state’s economic development agency over the collapsed video game company founded by former Red Sox pitcher Curt Schilling.

In a 35-page ruling, Rhode Island Superior Court Judge Michael Silverstein approved a $4.4 million settlement between the agency formerly known as the Economic Development Corp. and lawyer Antonio Afonso Jr. and his firm, Moses Afonso Ryan. Several parties to the suit had objected.

Afonso and the firm were among the 14 defendants named in the EDC’s complaint, which alleges fraud, negligence and breach of fiduciary duty, among other things. The EDC’s board in 2010 approved a $75 million loan guarantee for 38 Studios, which later filed for bankruptcy.

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The state remains responsible for some $89 million related to the transaction.

Associated Press