August 07, 2016

PROVIDENCE, R.I. (AP) The Latest on the legal fallout from Rhode Island's failed $75 million deal with 38 Studios, the video game company started by former Red Sox pitcher Curt Schilling (all times local):

3 p.m.

Former Rhode Island House Speaker William Murphy and a spokeswoman for Attorney General Peter Kilmartin are among those who have been subpoenaed to testify in a state superior court trial over Rhode Island's failed $75 million deal with 38 Studios, the video game company started by former Red Sox pitcher Curt Schilling.

Murphy and Kilmartin spokeswoman Amy Kempe are among five current and former state officials subpoenaed to testify in the civil trial, which is scheduled to start in October.

The two were subpoenaed by First Southwest, which was the financial adviser for the state's economic development agency. The economic development agency is suing First Southwest and several others, including Schilling.

The others subpoenaed are current and former members of the state economic development agency and a former state budget official.

They were all subpoenaed in July and August.

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12:40 p.m.

A federal judge has refused to dismiss a U.S. Securities and Exchange Commission lawsuit accusing Wells Fargo Securities of defrauding investors in Rhode Island's failed $75 million deal with 38 Studios, the video game company started by former Red Sox pitcher Curt Schilling.

U.S. District Judge Jack McConnell on Friday did dismiss a Wells Fargo banker from the complaint, but the SEC immediately said it would refile the lawsuit against him to address the judge's concerns.

The SEC sued Wells Fargo and Rhode Island's economic development agency in March.

Wells Fargo argued in a hearing that no investors have been harmed because all the bondholders have been paid.

The SEC argued was irrelevant that bondholders have been paid. It says it's seeking to hold accountable those who violate the law.

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