Statement Regarding Rhode Island Commerce Corporation’s Settlement with Certain Defendants in Pending 38 Studios Lawsuit

As Chairman of the Board of the Directors of the Rhode Island Commerce Corporation (RICC), Governor Lincoln D. Chafee announced today that a proposed settlement between the RICC and Antonio Afonso, Jr. and Moses Afonso Ryan Ltd. was filed today in the Rhode Island Superior Court. The proposed settlement is contingent upon approval by the Superior Court in the pending litigation.

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.

Statement from the Office of Governor Lincoln D. Chafee Regarding Drug Overdose Deaths

Governor Chafee said today: “I am greatly concerned and saddened by this epidemic of drug overdose deaths that is happening in Rhode Island and around the country. I send my condolences to all the families and communities of those who have lost loved ones. The recent spike in deaths since the beginning of the year has been especially troubling.

“I see hope and progress coming from our families and communities, working with health and behavioral officials, law enforcement officials and faith leaders throughout the entire state to address both the response to the health issue and also the cause of the problem.

“Specifically, this coalition of health, treatment and law enforcement has:

Brought attention to the issue and increased general public awareness of drug overdose as a preventable public health problem;
Sounded the alarm to users and the public;
Strengthened statewide overdose surveillance mechanisms;
Increased the usage and effectiveness of the Prescription Monitoring Program;
Increased access to naloxone training and distribution programs;
Increased access to substance abuse treatment; and
Convened a statewide group of stakeholders to collaboratively address the epidemic.

“As we move forward as Rhode Islanders, let us mourn the victims, and work with their families to stop these needless, preventable deaths.”

Governor Chafee Orders U.S. and State Flags to be Flown at Half-Staff in Remembrance for former South African President and Anti-Apartheid Leader Nelson Mandela

President Obama directs flags be lowered to half-staff immediately
 and until Sunset, Monday, December 9, 2013

Rhode Island joins the world in mourning the loss of a historic leader who spent his life fighting for freedom, social justice, and racial equality. He was a global icon of hope, sacrifice and understanding. His wisdom and foresight has been and will be an inspiration for generations to come. 

In his own words, Nelson Mandela said, “For to be free is not merely to cast off one’s chains, but to live in a way that respects and enhances the freedom of others.” That is how Nelson Mandela lived his life and led his nation. 

Accordingly, in remembrance for Nelson Mandela, President Obama has directed that flags be lowered to half-staff beginning immediately and until sunset Monday, December 9, 2013. Governor Lincoln D. Chafee has directed that both the Rhode Island and U.S. flags on all public buildings, grounds, and naval vessels across the State be flown at half-staff during the day.

Please see the President’s proclamation, here.

Statement from the Office of Governor Lincoln D. Chafee Regarding Completion of General Obligation Bond Offering for 2013

The state has completed its general obligation bond offering for 2013 and has sold $53.15 million of the bonds for various projects approved by Rhode Island voters in previous elections. The bond projects include the new Veterans Home in Bristol, affordable housing, building improvements at Rhode Island College, recreational facilities, open space acquisition, and clean water infrastructure. 

The issue was sold to a syndicate led by Citi and JP Morgan.  The following firms also served as co-managing underwriters: Bank of America Merrill Lynch, Janney Montgomery Scott, Oppenheimer, Raymond James and Roosevelt and Cross.

All three rating agencies affirmed the state’s ratings in connection with the sale: Aa2 from Moody’s, AA from Standard and Poor’s and AA from Fitch Ratings. The state’s strong fiscal management, positive trends in liquidity and a fully funded budget reserve fund were noted as strengths by the rating agencies in the reports released in connection with the bond issue.

Statement from the Office of Governor Lincoln D. Chafee Regarding the Federal Shutdown

As our economy is slowly rebounding, now is the time for leaders to ensure that government’s important services continue for our citizens as well as our businesses. We must avoid anything that will slow or impede the positives we have gained during the recovery. I believe that Rhode Island, and indeed the United States, cannot afford a federal shutdown over a budget impasse and health care reform, which is the law of the land. Congress needs to work together and develop a viable solution. I encourage Rhode Islanders and people throughout the country to join me in calling for a swift conclusion.