Schilling Attorney Claims New Documents Prove Rhode Island’s Lawsuit is ‘Baseless’

The attorney for former Red Sox Pitcher and 38 Studios founder Curt Schilling says that new documents that were previously withheld by the state of Rhode Island prove that the lawsuit against her client are baseless.

Speaking after a brief hearing in the case in Superior Court (in Providence, Rhode Island) today, Sarah Heaton Concannon said that documents she recently received from the court "contradict the allegations of the complaint" and show they're baseless. The documents had previously been withheld because lawyers for the Economic Development Corp. claimed that they were "privileged."

The state is suing Schilling and other former executives from the company, as well as former members of the RI EDC, and other individuals involved in the $75 million loan guarantee that lured Schilling's game development company from Massachusetts to Rhode Island. Ultimately 38 Studios could not pay back the loan and filed for bankruptcy in 2012.

Concannon did not disclose what the documents contained that exonerated her client.

The EDC, which has been renamed the Rhode Island Commerce Corp., agreed in 2010 to back a $75 million loan for 38 Studios, but the company ran out of money and filed for bankruptcy. Rhode Island is now responsible for an estimated $90 – $100 million related to the loan and  the lawsuit is an attempt to recover some of what the state stands to lose.

Schilling is one of 14 defendants named in the suit filed by the state, which alleges fraud, misrepresentation and breach of fiduciary duty, among other things – all related to the 38 Studios deal. The state and the EDC allege that the EDC board was tricked into approving the deal.

In court Friday, attorney William Dolan, who represents former EDC lawyer Robert Stolzman, told the judge that there are still "substantial disputes" over documents being withheld on the grounds of privilege by the state.

EDC attorney Stephen Sheehan said that his side submitted a log of documents almost a year ago that it has the right to withhold and that the defendants have had plenty of time to raise objections.

Source: Star Tribune

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