The troubled story of Curt Schilling’s 38 Studios continues. After going bankrupt in 2012, having all its assets seized by the state of Rhode Island, and then auctioned off, 38 was sued by the state for the $75 million that they were unable to pay back. Today, as AP reports, Shilling is looking to have the case against his former company dismissed.
The state claims that Schilling and his fellow executives “misled the agency's board into signing off on the loan guarantee in 2010 and withheld information, including that the company needed more money” to develop Kingdoms of Amalur. As such, 38 Studios has been accused of fraud, racketeering, and conspiracy. According to Schilling, these accusations are “implausible,” and he and his team “repeatedly disclosed the company's financial needs to Economic Development Corp. officials.”
To make matters more interesting, $25 million of the original $75 million loan was held in reserve, meaning that 38 Studios was never able to use that money to save the company. The filing also claims that the state knew that development would cost over $125 million, meaning that they could not expect the smaller loan to finance the game to completion.
Taylor Cocke is a Bay Area based freelance games writer. Listen to him spout about bands you don't care about by following Taylor on Twitter @taylorcocke.
Source : ign[dot]com
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