The settlement provides for payment to the RICC of the gross sum of $4,370,000. This sum represents the full amount remaining of these settling defendants’ insurance coverage, less a sum of $200,000 set aside to pay the legal fees of these individual settling defendants in the pending action and related lawsuits or proceedings. Although the original coverage limits on this insurance policy were $5,000,000, the insurance policy provides that all defense costs are deducted from the coverage limits. Defense costs to date have been approximately $430,000.
The settling defendants have not acknowledged or admitted any liability or wrongdoing in connection with the matters on which the pending litigation is based. To the contrary, they maintain their original position that they have no liability and committed no wrongdoing. The settlement agreement states that the RICC and the settling defendants are mindful of the inherent uncertainty of litigation, and the financial costs associated with the ongoing prosecution and/or defense of same.
Under these circumstances, the RICC and the above-named settling defendants have agreed that this settlement is reasonable. The RICC’s litigation is still going forward against other defendants who are not included in this settlement.
“The proposed settlement is a step in the right direction, and I hope this is the beginning of a positive resolution to the 38 Studios saga,” Governor Chafee said.
