Pre-Trial Arguments Begin in RI Case Against 38 Studios

The Providence Journal reports that pre-trial wrangling was underway this morning in the lawsuit filed by the state of Rhode Island against 14 defendants related to the $75 million loan guarantee given to Curt Schilling's 38 Studios in 2010.

According to the paper, lawyers for the 14 defendants in the case and for the R.I. Economic Development Corp. (EDC) argued over legal details of the case with colorful phrases, such as "spaghetti mess," "pulling a Heisman" and "blunderbuss" filings. R.I. Superior Court judge Silverstein, who earlier in the month said that a majority of the claims in the case could be pursued (allegations of fraud, negligence, and breach of fiduciary duty), settled some case deadlines and other administrative matters during the hearing this morning.

38 Studios filed for bankruptcy last year, leaving Rhode Island taxpayers with a nearly $100 million debt to pay back to bond holders. The state later took control of the company's intellectual property (Kingdoms of Amalur: Reckoning, and the unfinished MMO Project Copernicus), which it hopes to sell later this year at auction and put towards the debt related to the loan. The state also sold off assets such as office furniture and equipment from the company, at auction.

We will have more details on this case as they become available.

Source: Providence Journal

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