Settlement in 38 Studios case ends lawsuit over failed deal

A judge has approved a $16 million settlement, ending the lawsuit over Rhode Island's failed $75 million deal with former Boston Red Sox pitcher Curt Schilling's video game company.

Superior Court Judge Michael Silverstein heard Friday from the state economic development agency and the state's financial adviser on the deal.

38 Studios moved from Massachusetts to Rhode Island in 2010 in exchange for a $75 million loan guarantee, then went bankrupt.

Combined settlements in the case total about $61 million. The state's lawyer says it was "worthwhile."

Still pending is a U.S. Securities and Exchange Commission lawsuit against Wells Fargo and the economic development agency, accusing them of making misleading statements about bonds used to fund the deal.

A tentative settlement agreement with the economic development agency awaits SEC approval.