Final case tied to Schilling's Rhode Island deal dismissed
A judge has dismissed the final legal case stemming from Rhode Island's failed $75 million deal with former Boston Red Sox pitcher Curt Schilling's video game company, 38 Studios.
U.S. District Judge Jack McConnell on Tuesday dismissed the U.S. Securities and Exchange Commission's lawsuit against a Wells Fargo employee. Peter Cannava was lead banker on the bond offering that funded the deal.
His lawyer says Cannava did not encounter any red flags when preparing the bond offering and the decision validates that there was no evidence Cannava misled investors.
The state's economic development agency used bond funding to lure Schilling's company from Massachusetts to Rhode Island in 2010. It later went bankrupt.
In a different lawsuit in state court, Rhode Island received about $61 million in settlements.