Rhode Island senate passes 38 Studios legislation

Rhode Island

A major hurdle in paving over the bad feelings, poor decisions, and millions of dollars in unpaid loans that 38 Studios caused when it defaulted two years ago has been crossed, as Rhode Island's Senate has approved legislation to settle the affair out of court.

The Senate unanimously passed a bill to shield from future lawsuits any party that settles with Rhode Island Commerce Corp. The RICC, formerly the Economic Development Corp., has been trying to figure out a way to recoup as much of the $90 million lost through former 38 Studios deals as possible, and the attorney for the state says that this legislation will increase any future recovery of those funds.

The Rhode Island House of Representatives has to consider and vote on a similar bill for this to proceed. Lawyers say that the longer this case goes without a settlement, the larger the legal bills will be, which will diminish those funds the state does recover.