Rhode Island Goes After 38 Studios Founder Curt Schilling
Aaaaand, it just keeps getting worse and worse.
Developer 38 Studios is now bankrupt and in the possession of the state of Rhode Island, but that's hardly the end of the unfortunate saga. Now, the Rhode Island Economic Development Corporation (RIEDC) has filed a suit in RI superior court against some of the executives behind that $75 million loan that brought 38 Studios to Rhode Island.
One of the defendants is company founder and former pro baseball player, Curt Schilling, and RI wants a piece of former 38 Studios CEO Jennifer Maclean, too. There's a long and depressing 97-page complaint posted over at the RIEDC website, if you're interested. As you can see, there's also a video message from RI governor Lincoln Chafee, who reminds everyone that he never liked the original loan and his primary goal is to protect taxpayer money.
As for the suit, one of the claims is that the defendants never spoke with the RIEDC board when concerns arose regarding the financial stability of 38 Studios. The state claims the defendants knew the studio was "destined to fail" due to their own financial projections. All in all, there are 17 counts of alleged wrongdoing, including unjust enrichment, fraud, civil conspiracy, breach of implied covenant of good faith, negligence, legal malpractice, fraudulent misrepresentation, and breach of fiduciary duty.
Man, what a mess.
11/1/2012 9:47:15 PM John Shepard