R.I. EDC Files Lawsuit Against Architects of 38 Studios Deal
Theres more fallout from the 38 Studios bankruptcy this week as lawyers for the Rhode Island Economic Development Corporation (EDC) filed suit against several of the people responsible for the $75 million loan guarantee deal that brought Curt Schillings game development studio to the state. Named in the lawsuit are several people responsible for forming the deal such as 38 Studios founder Curt Schilling, former 38 Studios CFO Richard Wester, former 38 Studios CEO Jennifer MacLean, former EDC Executive Director Keith Stokes and several others. Several banks and law firms have also been named as defendants.
A PDF of the suit makes allegations such as larceny, manipulation of the EDC board and falsifying information. The EDC is seeking a trial by jury by which it claims that the members that approved the deal could potentially be held liable if found guilty.
38 Studios laid off all of its employees back in May and filed for Chapter 7 bankruptcy in June following financial difficulties. The state of Rhode Island assumed control of the studio's assets in August. Curt Schilling later opened up about the collapse of the studio, pointing part of the blame at Governor Lincoln Chafee for statements made that reportedly cost the developer a publishing deal. Schilling also reportedly sunk a huge portion of his own personal fortune into the studio.
Part of 38 Studios assets was sold off in a pair of auctions last month for roughly $830k. The auctions did not include rights to the video game properties held by 38 Studios that includes Kingdoms of Amalur: Reckoning and the MMORPG codenamed Copernicus.
Following the announcement, Governor Chafee posted a brief video to YouTube about the suit but did not go into extensive detail to avoid any legal issues.