Schilling and officials with 38 Studios will pay $2.5 million to Rhode Island as part of an agreement to settle the state's $75 million lawsuit against the company, WCVB-TV in Boston reported.
The firm, started by Schilling, relocated to Rhode Island from Massachusetts in 2010 and filed for bankruptcy in 2012. Schilling blamed the company's failing on Rhode Island's economic development agency and steadfastly denied any wrongdoing,
The settlement still must be approved by a Superior Court judge overseeing the case. Retired Superior Court Judge Francis Darigan, who served as mediator for the suit, told reporters Monday that the insurance company for 38 Studios would be responsible for paying the settlement.
"No one is going to be perfectly satisfied with this," Darigan said. "It's a practical move on the part of the state."