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38 Studios' Schilling wants fraud lawsuit dismissed

Schilling asks Court to throw out Rhode Island's lawsuit

According to a report by the Associated Press, 38 Studios founder Curt Schilling is asking a Rhode Island Superior Court judge to dismiss the state's fraud lawsuit against the company. Schilling's attorney's filed documents asking Superior Court Judge Michael Silverstein to drop the lawsuit, which alleges that 38 Studios was involved in fraud, racketeering, and conspiracy. The filing says that 38 Studios repeatedly informed Rhode Island's Economic Development Corp (EDC) about the company's financial needs and issues.

"Given the EDC's admissions concerning 38 Studios' disclosures to the EDC's executives, attorneys and financial advisor, it is impossible for the EDC simultaneously to claim that the 38 Studios defendants supposedly defrauded the EDC," the filing says.

The EDC's lawsuit states that 38 Studios misled the agency to acquire its loan, withholding the fact that more money was needed to finish Project Copernicus, the MMO under development. Schilling's lawyers counter that the EDC knew the company needed the full $75 million from the loan, but were only given $50 million.

EDC attorney Max Wistow is preparing a response to Schilling's filing. The agency is seeking triple damages in the case and wants Schilling and company to pay the bonds acquired on 38 Studios' behalf.

[Image via Daylife]

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Latest comments (1)

Caleb Hale Journalist 3 years ago
Surprise. The state of Rhode Island didn't know jack about developing video games, gave Schilling a massive loan and a promise of better days ahead, contingent on the commitment that 38 Studios would hire hundreds more people to their development team over the next several years.

All this at a time when the industry was beginning to contract and development teams were getting smaller and less stable industry wide. These were two entities with absolutely no prior experience in the gaming industry, who tried to create an economic boon that was simply never sustainable. It's unfortunate public money got entangled in all this.
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