Agency settles case over ex-player’s videogame company deal
PROVIDENCE, R.I. — The state’s economic development agency said on Wednesday it has settled a lawsuit brought against it by the U.S. Securities and Exchange Commission over the state’s failed $75 million deal with former Boston Red Sox pitcher Curt Schilling’s videogame company.
The Rhode Island Commerce Corporation said it agreed to pay a civil penalty of $50,000 and in the future not violate the law it was accused of violating in the offer or sale of any securities.
The lawsuit accused the agency and the Wells Fargo financial services company of making misleading statements about bonds used to fund the deal. The agency didn’t admit or deny the allegations. A Wells Fargo spokesman didn’t immediately respond to a phone call or an email seeking comment. The SEC declined to comment.
The settlement, if approved in U.S. District Court, would mark the end of the state’s pending litigation related to 38 Studios.