Yet Another 38 Studios-Driven Cost to Taxpayers: Higher Liability Insurance Premiums


Good on Kathy Gregg determinedly plowing through all of the different policies and coverage dates and information related to the EDC’s liability insurance to give us this article in yesterday’s ProJo.

The numbers may — or may not — be relevant to a question the lead lawyer in the state’s lawsuit to recover its failed $75 million loan to ex-ballplayer Curt Schilling’s video-game company seemed to answer, then recanted: Did the economic development agency’s own insurance pay for the alleged bad acts of its former director and deputy director in the 38 Studios legal case?

Gregg’s strongest headwind in trying to get this information appears to be a lawyer representing the state in its effort to recoup 38 Studios losses who ultimately refused to give her any straight answers on the critical matter of claims paid by this taxpayer-funded insurance policy.

Several hours after a story recounting this conversation appeared online, Wistow called The Journal to say: “There was some misunderstanding.” “I expect they paid and I believe they paid, but I have no firm basis for saying it,” [Attorney Max] Wistow said. “I really don’t know. I assumed.”

Well, that’s very helpful and informative.

The upshot of it is that taxpayers are paying more for liability insurance on behalf of the state almost certainly because the insurance companies had to pay a claim on behalf of two former EDC officials to settle the state’s lawsuit against them. Add yet another 38 Studios-related expense that taxpayers are picking up, all the while, not getting comprehensive answers – at least, not yet – as to what happened and whether there was criminal activity involved.

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