Commerce Corporation Reaches $16 Million Dollar Settlement with First Southwest Company in 38 Studios Lawsuit

Settlements Total Nearly 70 percent of the $88 million state moral obligation on the
38 Studios bonds.

PROVIDENCE, R.I. (February 1, 2017) – The Rhode Island Commerce Corporation
announced today it has agreed to a $16 million proposed settlement with Hilltop
Securities Inc. (formerly First Southwest Company) in the 38 Studios litigation. The
settlement was filed in Rhode Island Superior Court today and is contingent upon
court approval.
If the Court approves the settlement, the Corporation will have obtained settlements
totaling approximately $61 million in the 38 Studios litigation, nearly 70 percent
of the approximately $88 million state moral obligation on the 38 Studios bonds for
both past and future appropriations.
The Corporation previously settled claims against Curt Schilling, Thomas Zaccagnino,
Richard Wester, Jennifer MacLean, and their insurer, Starr Indemnity and Liability
Company for $2.5 million in September 2016; Wells Fargo Securities, LLC and Barclays
Capital Inc. for $25.625 million in August 2016; Antonio Afonso, Jr. and Moses
Afonso Ryan Ltd. for $4.4 million in June 2014; and Adler, Pollock & Sheehan P.C.,
Robert I. Stolzman, J. Michael Saul, and Keith W. Stokes for $12.5 million in August
2015.