PROVIDENCE, R.I. (AP) — Rhode Island Gov. Lincoln Chafee has signed into law legislation intended to encourage settlements in the litigation surrounding the collapse of Curt Schilling's video game company.

The Democratic governor signed the bill Thursday. It aims to shield any defendant that settles in the case from lawsuits from co-defendants over damages for which that defendant is found liable.

The former Economic Development Corp. sued the ex-Red Sox pitcher and others after 38 Studios went bankrupt. The agency approved a $75 million loan guarantee for the company. The state is on the hook for about $90 million.

The agency's lawyer says he's had preliminary settlement talks with unidentified defendants. He says the bill Chafee signed will help maximize any financial recovery.