Amid all the tarnish caused by the 38 Studios saga, it’s good to see a little gold nugget among the detritus. The $25.6 million settlement with Wells Fargo Securities and the investment firm, Barclays Capital PLC, is a major accomplishment. The state will net about $21.4 million after the legal fees and other costs are deducted from the settlement. Those funds will go directly to pay off the bonds.

The settlement is subject to court approval which most certainly will happen given the fact that the deal was brokered by Superior Court judge (ret.) Francis Darigan. Judges show deference to the work of a colleague. While some might argue that the settlement should have been higher there is no such thing as a slam dunk following a trial. The settlement, when added to prior deals, means that the state has recouped about 40 percent of the total amount for which the taxpayers are on the hook with two defendants (38Studios has Curt Shilling and some of his team as a group of defendants) and First Southwest still on the chopping block.

It was interesting to listen to the discussion on talk radio, which was mostly negative. Certainly, I have taken the position that the bonds should never have been paid and that the reinsurer should have been sued. I also think that the entire “investigation” and grand jury proceedings should be made public. Yet, despite all that went wrong with 38 Studios, this recovery is something that went right.

Some of the talk show jawboning centered on the fees received by the law firm: Wistow, Sheehan and Lovely. I think the criticism is unfair. That firm is doing the legal work for half of the usual contingency fee. The very competence, thoroughness of preparation and trial skills of Max Wistow et al certainly was a factor in the defendants settling their respective responsibilities. The firm’s reputation will probably also precipitate a settlement by First Southwest.

Curt Shilling is continuing to claim that he wants a trial. On one level that might not be so bad since the taxpayers will get a peek into some of the machinations re this project. Of course, only the fuller record apparently gathered by the state police and the grand jury will ever give an approximation as to the folly of this enterprise. Since Mr. Shilling has expressed his political aspirations, it will be interesting to see whether he will cut his losses and have more time to campaign for office with a settlement (wherein he does not admit liability) or whether he gambles that he will be fully exonerated during the trial. Corporations, particularly companies that assess risk as part of their DNA, are usual candidates for settlement. Individuals are not so likely and make decisions based on hubris. He has an oversized ego. There’s probably only a 50/50 chance that he’d settle before trial, where the odds are much greater that First Southwest will cave pretrial.

In any event, the settlement is a feather in the cap of the Governor and the Commerce Commission. Despite the cacophony of criticism leveled at her and the commission they actually made the right decision by supporting this settlement. Now if only they can get all the investigative reports and grand jury material released.

Arlene Violet is an attorney and former Rhode Island Attorney General.