- Associated Press - Tuesday, August 25, 2015

PROVIDENCE, R.I. (AP) - Former Red Sox pitcher Curt Schilling is among those objecting to a proposed $12.5 million settlement with four other defendants in the lawsuit over the state’s failed $75 million deal with his video game company, 38 Studios.

Lawyers for Schilling and other executives at 38 Studios filed papers on Monday opposing the settlement. They joined in objections filed Friday by First Southwest, which advised economic development officials on the deal, and by Wells Fargo Securities. Superior Court Judge Michael Silverstein is due to hold a hearing to discuss the proposed settlement on Friday.

The state’s Economic Development Corp. lured 38 Studios to relocate from Massachusetts in 2010 with a $75 million state loan guarantee. When the company went belly up less than two years later, the state was left on the hook to repay tens of millions of dollars. The lawsuit against Schilling and others is an attempt to recover some of that money.

It alleges fraud, negligence and breach of fiduciary duty, among other things.

The proposed settlement was reached earlier this month with lawyer Robert Stolzman and his firm Adler, Pollack & Sheehan, along with J. Michael Saul and Keith Stokes, who once led the Economic Development Corp.

The reasoning for the objections to the settlement was not fully made public.

Lawyers for 38 Studios said they were prompted in part by constitutional objections about the validity of the settlement. They also said they were joining in the objection filed by First Southwest, but First Southwest’s reasoning was filed under seal.

Lawyers for Schilling and First Southwest would not comment on the filings.

If approved, it would be the second settlement in the case, after a $4.4 million deal reached last year with another lawyer and law firm that represented the Economic Development Corp, since renamed the Commerce Corp.

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