- Associated Press - Monday, July 7, 2014

PROVIDENCE, R.I. (AP) - Two former employees of Rhode Island’s economic development agency have asked a judge to block a settlement over the failed $75 million deal with former Boston Red Sox pitcher Curt Schilling’s video game company 38 Studios.

Keith Stokes, who was executive director of the agency formerly known as the Economic Development Corp., and J. Michael Saul, who was deputy director, objected to the proposed settlement on Monday, The Providence Journal (https://bit.ly/1qOEVYs ) reported.

Antonio Afonso and his firm, Moses Afonso Ryan, agreed to pay $4.4 million from the law firm’s insurance policy. Afonso was bond counsel to the Economic Development Corp. on the deal.

The law firm says in the filing it denies any liability but wants to put the matter behind it.

Stokes and Saul, who are co-defendants in the case with Afonso, argue that the Rhode Island law allowing such individual settlements is unconstitutional.

If approved, it would be the first settlement in the high-profile lawsuit over 38 Studios. A hearing is scheduled for Tuesday.

The company moved to Rhode Island from Massachusetts in 2010 with the promise of a $75 million loan guarantee. It declared bankruptcy in 2012, leaving the state on the hook for as much as $100 million. The lawsuit was filed in 2012 against Schilling and others as an attempt to recover some of that money.

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