About $45 million of 38 Studios’ $75 million loan has been repaid (through settlements)

In late July, the state of Rhode Island announced it had suspended its four-year-long criminal investigation into 38 Studios, one of two principal developers behind Kingdom of Amalur: Reckoning, over alleged misuse of state funds. Even though the criminal case has been halted (which is not the same as “closed,”) two major civil suits are ongoing.

One of those civil suits saw a new development recently when 38 Studios founder Curt Schilling and three other company executives agreed to a $2.5 million settlement to effectively buy their way out of the lawsuit. This is made possible by an amended Rhode Island law which says that in lawsuits with multiple defendants, each of those can settle independently without influencing the suit’s overall judgment. With Schilling and his fellow executives settling out, this means the sole remaining defendant is financial advisement firm First Southwest, which initially advised on the loan in 2010.

Better (for Rhode Island taxpayers, at least), USA Today calculates that the total amount gathered through settlements like these comes in at around $45 million, more than half of the original $75 million loan. It’s good to see the state recouping at least a solid chunk of this investment, even if it comes through settlements as opposed to court-proven wrongdoing.

Top image source: Curt Schilling surrounded by reporters. Steven Senne, Associated Press (via Boston.com).

(h/t Gamasutra, USA Today.)