It should come as no shock that the Rhode Island Senate today unanimously approved legislation that encourages out-of-court settlements in the 38 Studios lawsuit. The news comes from a syndicated Associated Press report. The bill, which was floated to lawmakers by Governor Lincoln Chafee's office earlier this month and supported by the lead attorney representing the Rhode Island Economic Corp. (now known as the Rhode Island Commerce Corp.) in a lawsuit against former 38 Studios executives and others associated with the $75 loan deal that went awry.
Last week Wistow urged a Senate committee to pass the legislation because recoverable resources were "being eaten up very rapidly" by the ongoing legal battle. Wistow also indicated that some involved in the lawsuit had expressed an interest in settling the matter out of court.
The next stop for the bill is the House. This week lawmakers in the house looked at the bill but did not vote on it. We suspect that lawmakers in that chamber will feel pressure from the Senate, the EDC, and the Governor's office to pass the legislation as quickly as possible.