Remember that time 38 Studios collapsed due to incredible financial mismanagement, taking Kingdoms of Amalur and any possible sequels right along with it? Watching the whole thing unravel was certainly one of the more interesting news stories last year, and the pending lawsuit between Rhode Island and 38 has helped carry the drama well into 2013.

Here’s the deal: 38 Studios was funded primarily by a loan from Rhode Island. A really big loan. Unfortunately for the state, the company did a terrible job of budgeting and quickly ran itself into the ground. Now RI is suing to recoup some of the damage, but Curt Schilling, the former head of 38, is attempting to have the whole thing thrown out of court.

The Rhode Island Economic Development Corporation claims that Schilling and his partners lied about the state of the company’s games and its financials, while Schilling has called those claims “implausible” and is adamant that 38 Studios disclosed all of its financials to the EDC. Your basic “he said, she said.”

Here’s part of the motion to dismiss:

"Given the EDC's admissions concerning 38 Studios' disclosures to the EDC's executives, attorneys and financial advisor, it is impossible for the EDC simultaneously to claim that the 38 Studios defendants supposedly defrauded the EDC.”

We’ll just have to wait and see what the court determines. Honestly though, the good money isn’t on Schilling here.

[Destructoid]

Tweet

50% of voters think this story ROCKS!

Vote Now!    (3) (3)