BC-US--38 Studios,1st Ld-Writethru, US
PROVIDENCE, R.I. (AP) — A federal judge has approved an agreement for Wells Fargo Securities to pay an $800,000 civil penalty to end a lawsuit by the U.S. Securities and Exchange Commission over Rhode Island’s failed $75 million deal with former Boston Red Sox pitcher Curt Schilling’s video game company, 38 Studios.
Wells Fargo doesn’t admit or deny wrongdoing in the judgment entered Wednesday.
A lawyer for a Wells Fargo employee who is the final defendant in the case says he plans to ask that the claims against him be dismissed.
The case represents the final legal battle over 38 Studios . The state’s economic development agency used bond funding to lure the company from Massachusetts to Rhode Island, where it went bankrupt.
The SEC accused Wells Fargo and the economic development agency of making misleading statements.