Judge in 38 Studios case steps aside

PROVIDENCE, R.I. (AP) — A federal judge has recused himself from the U.S. Securities and Exchange Commission’s lawsuit over the state’s $75 million deal with 38 Studios, the failed video game company owned by former Red Sox pitcher Curt Schilling.

WPRI-TV reports that U.S. District Judge William Smith was randomly assigned to the case when the agency filed suit last week against the Rhode Island Commerce Corp., Wells Fargo and others. The SEC says they defrauded investors by making misleading statements when they sold the bonds used to fund the deal.

Smith says his wife works for Commerce, the state economic development agency, so recusing himself was appropriate.

The case has now been assigned to U.S. District Judge Jack McConnell.