A Rhode Island court has signed off on the state's second partial settlement in the 38 Studios lawsuit.

State Superior Court Judge Michael Silverstein on Friday approved the combined $12.5 million payout by four defendants in the case related to the failed video-game company owned by former Boston Red Sox pitcher Curt Schilling.

The defendants are former Rhode Island Economic Development Corp. executives Keith Stokes and J. Michael Saul, former corporation legal counsel Robert Stoltz and his law firm, Adler Pollock & Sheehan PC. The parties agreed to the settlement last month.

"The court finds … that the settlement constitutes a good faith settlement," Silverstein said in his ruling, while rejecting objections from defendants First Southwest Co. and Wells Fargo Securities LLC.

First Southwest remains Rhode Island's financial advisor, which has generated controversy within the Ocean State.

"Their objections to the 38 Studios settlement represents a clear conflict of interest," state Senate government oversight committee chairman James Sheehan, D-North Kingstown, said in a recent interview.

First Southwest has been the state's financial advisor since 2001. Its contract ends in May 2016. State officials will issue a request for proposals for the next financial advisory contract on Dec. 1.

Other parties that haven't settled include Schilling, who pitched in the World Series for three teams, including the 2004 champion Red Sox.

The EDC, since rebranded as Rhode Island Commerce Corp., has clawed back $16.9 million through 38 Studios settlements. Previously, attorney Antonio Afonso and his law firm, Moses Afonso Ryan, settled for $4.4 million.

The corporation issued a $75 million loan in 2010, backed by the state's moral obligation, to Schilling's company to lure it to downtown Providence from Maynard, Mass., in 2010. 38 Studios folded in 2012, filing for Chapter 7 bankruptcy.

Rhode Island owes $74.3 million on the debt including interest, according to state documents.

Silverstein two weeks ago ordered the release of all documents related to the lawsuit, although he scheduled a hearing for Tuesday to consider motions to keep some of them sealed.

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