RI Judge Greenlights Lawsuit against 38 Studios

A Rhode Island judge is allowing a lawsuit filed by the state's Economic Development Corp. against former Red Sox pitcher Curt Schilling and others related to the default on a loan guarantee that went south after 38 Studios went bankrupt.

Superior Court Judge Michael Silverstein issued a 99-page ruling today allowing the Rhode Island EDC to sue Schilling, former 38 Studios executives, former EDC officials (related to facilitating the deal) and others. The EDC contends that 38 Studios and former EDC officials misled the agency’s board into approving a $75 million state loan guarantee for the company. 38 Studios filed for bankruptcy last year, leaving the state to pay off more than $100 million related to the original loan.

The EDC sued Schilling and others in November of last year, with the hope of recouping some of the money that state lost in backing Schilling's company.

We will have more details on this story and this court case as it becomes available.

Source: Washington Post


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