RI Court Documents Claim 38 Studios Knew They Couldn't Pay Back Loan

April 5, 2013 -

Rhode Island Superior Court documents unearthed by The Providence Journal claim that the management at the now-defunct 38 Studios knew they didn't have enough money to finish projects before moving to the Ocean State. At least that is what the state is alleging in its case against the company who took a loan for millions of dollars and then defaulted on the loan. The court documents say that the studio founded by former Red Sox pitcher Curt Schilling knew this well before it took the loan, ultimately luring it away from its headquarters in Massachusetts to Rhode Island.

The state is arguing that management relied on some questionable financial projections to operate its business. Of course it probably didn't help that 38 Studios spent some of that money to acquire Big Huge Games. Rhode Island filed a lawsuit in November 2012 against Schilling and other 38 Studios executives over a controversial $75 million loan that brought the game company to the Ocean State in 2010.

The complaint contains 17 counts of alleged wrongdoing against 38 Studios including fraud, unjust enrichment, civil conspiracy, breach of implied covenant of good faith and fair dealing, negligence, legal malpractice, negligent misrepresentation, fraudulent misrepresentations and omissions, and breach of fiduciary duty.

Source: The Providence Journal

 

 


 
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