The Rhode Island Supreme Court on Wednesday upheld a lower court’s ruling and denied Gov. Gina Raimondo’s bid to unseal documents related to the grand jury investigation into the collapse of 38 Studios, former Boston Red Sox pitcher Curt Schilling’s video game company.
The court in its unanimous decision said the Democratic governor did not have the standing to request that grand jury proceedings be made public just because of intense interest in the case.
Grand jury proceedings are normally secret, but the high court has the discretion to make them public under “exceptional circumstances.”
The court, while acknowledging intense interest in the case, said the governor did not prove exceptional circumstances.
“For many people in this state, particularly those who are currently holding public office, the 38 Studios situation and the company’s bankruptcy, occurring as it did just as the entire country was clawing its way out of the Great Recession, still stings,” the court wrote in a 32-page opinion. “We certainly understand those feelings.”
“However, after careful consideration of the issues ably briefed and argued by the parties, the judgment of the Superior Court is affirmed,” the court wrote.
Raimondo’s spokesman said she was disappointed with the decision.
“The governor has worked hard to end the culture of special deals like 38 Studios and to provide more transparency into the way we do business in Rhode Island,” spokesman Josh Block said in a statement. “While she respects the court’s decision, she is disappointed that the public will not be able to gain additional insight into the failure of the 38 Studios deal.”
The state attorney general’s office argued against releasing the records, saying the public interest did not justify undermining grand jury secrecy rules.
“I understand that today’s Supreme Court decision may result in frustration on the part of Rhode Islanders who favor more transparency in government,” Democratic state Attorney General Peter Neronha said in a statement. “Yet the court’s decision today is what I expected the outcome to be under the current state of Rhode Island law, which simply does not allow the release of grand jury material in the absence of an indictment, except in very limited circumstances.”
Schilling struck a deal in 2010 to move his company from Massachusetts to Rhode Island in exchange for a $75 million loan guarantee from the state. Less than two years after the move, 38 Studios ran out of money and went bankrupt.
The statewide grand jury sat for 18 months, ending in 2015 with no criminal indictments.
The state initiated civil litigation against several people and entities involved in the 38 Studios deal, resulting in settlements that recovered more than $61 million for taxpayers.
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