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Curt Schilling’s 38 Studios may go down in history as one of the worst managed video game companies, but history hasn’t yet finished with the developer or its executives. The last we heard, the state of Rhode Island was still intent upon bringing a lawsuit against the former Red Sox pitcher and news commentator as well as the executives of the failed game developer. The Associated Press is now reporting that a judge has ruled in favor of the state, allowing them to go ahead with most of a planned lawsuit.
The lawsuit in question accuses Schilling and his executives of fraud, negligence, breach of fiduciary duty, among other acts, misleading the state into approving a $75 million loan. Last year, 38 Studios went bankrupt to the tune of more than $100 million, leaving the bill to be paid by the taxpayers of Rhode Island. The judge declared that the state could seek financial damages for fees and salaries collected by the defendants, damage to reputation and credit, but could not seek damages on the bonds issued until the money had been spent.
Schilling has maintained that the lawsuit is purely political and that the developer had no intention of wrongdoing when it sought the loan and that Rhode Island was well aware of the risks of investing in the game developer.
(Source: Associated Press)
