38 Studios settlement bill passed by RI House of Representatives

The Rhode Island House of Representatives has voted to pass a bill to expedite out-of-court settlements of its lawsuit against 38 Studios.

According to NBC 10, the bill passed in a vote of 53-16, and now needs only be signed into law by governor Lincoln Chafee.

Rhode Island is suing 38 Studios officials as well as banks and advisors, claiming misinformation and mismanagement leading to the state issuing a $75 million loan to the developer, which went bankrupt. The bill will encourage settlements in this suit by preventing co-defendants from suing each other for damages.

Rhode Island will soon vote on a second bill determining whether it should default on the loan.

The Rhode Island vs 38 Studios saga is a long and involved one; the latest figure to weigh in is Sony Online Entertainment president John Smedley, who claims Chafee scuttled the studio.

Thanks, Joystiq.