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38 Studios court arguments begin

Dismissal cases presented for Schilling and fellow defendants, state promises "avalanche" of evidence against them

Arguments have begun in the court case over the 38 Studios collapse. According to a Providence Journal report, a Rhode Island Superior Court judge heard arguments yesterday over a motion from defendants to have the case dismissed.

Last November, the Rhode Island Economic Development Corporation sued 14 people and entities, including 38 Studios founder Curt Schilling, accusing them of fraud, negligence, conspiracy, larceny, and more in connection with $75 million in loan guarantees the state gave to the developer for relocating from Massachusetts. The RIEDC claims all of the accused, from Schilling to former RIEDC employees to the banks and lawfirms involved, knew or should have known that 38 Studios was not financially viable, even with the loan money.

In court, an attorney for the defendants called the accusations specious. The RIEDC's lawyer countered that the firm has an "avalanche" of evidence pointing to wrongdoing.

38 Studios shut down in May of 2012, months after shipping its first project, Kingdoms of Amalur: Reckoning. Earlier this week, it was reported that the state had found parties interested in purchasing 38 Studios' intellectual property.

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Brendan Sinclair

Managing Editor

Brendan joined GamesIndustry.biz in 2012. Based in Toronto, Ontario, he was previously senior news editor at GameSpot in the US.

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