Judge Rules 38 Studios Lawsuit May Proceed

Judge Rules 38 Studios Lawsuit May Proceed

38 Studios logo

The Rhode Island Economic Development Corporation is one step closer to bringing legal action against Curt Schilling and other former executives at 38 Studios.

The Rhode Island Economic Development Corporation filed a lawsuit against former 38 Studios and EDC executives last November, alleging that the dramatic collapse of the Kingdoms of Amalur developer, which left Rhode Island on the hook for more than $100 million, occurred because of failure to disclose the true risks of bringing the studio to the state. Today that lawsuit moved one step closer to the inside of a courtroom, following Rhode Island Judge Michael Silverstein's ruling that the suit may proceed.

Silverstein dismissed some of the counts against some of the defendants and ruled that the EDC cannot seek $75 million in damages because it didn't actually lose $75 million in the transaction. The EDC may, however, "recover for (1) its liability for the General Assembly's appropriation of funds; (2) injury to its reputation and credit; and (3) the fees and salaries paid to the Defendants." The lawsuit did not seek a specific dollar amount when it was filed.

"We are very pleased with the decision," EDC lawyer Max Wistow said. "The judge is saying the EDC does have standing to collect that [money]. It enables us to go forward and to process to what we feel will be a favorable conclusion for the state."

The next hearing is scheduled for September 13.

Source: Providence Journal

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I have such mixed feelings about this. On one hand Curt Schillings had no skills whatsoever in investing, project management, and in general being in charge of a game development company that he kinda deserves this and had it coming. On the other hand, they made such a great product that I don't want to see any of the artists and developers caught up in the middle of some "Millionaire vs State of Rhode Island" legal bull***t.

Godspeed, and good luck to anyone caught in the crossfire. This isn't going to be pretty.

So, if they win where is all this money supposed to come from? 38 Studios is dead with no money.

AC10:
So, if they win where is all this money supposed to come from? 38 Studios is dead with no money.

The suit isn't against 38 Studios but against the directors of 38 studios and the former directors of the Rhode Island Economic Development Corporation personally. If Rhode Island wins they get the personal assets of those people up to the value of damages awarded. They won't get all the money back but they should pick up $5-10 million or so.

Earlier 38 news posts made me shocked, or angry, or some other emotion that inspires strong opinions.

Now that it's just a bunch of lawyers squabbling over bones with a few poor saps caught in the middle, these items just make me sad.

I hope all the former 38 Studios rank-and-file employees are doing well.

albino boo:

AC10:
So, if they win where is all this money supposed to come from? 38 Studios is dead with no money.

The suit isn't against 38 Studios against the directors of 38 studios and the former directors of the Rhode Island Economic Development Corporation personally. If Rhode Islands wins they get the personal assets of those people up to the value of damages awarded. They won't get all the money back but they should pick up $5-10 million or so.

Okay I think I get it! Thanks for clearing that up, Albino!

TiberiusEsuriens:
I have such mixed feelings about this. On one hand Curt Schillings had no skills whatsoever in investing, project management, and in general being in charge of a game development company that he kinda deserves this and had it coming. On the other hand, they made such a great product that I don't want to see any of the artists and developers caught up in the middle of some "Millionaire vs State of Rhode Island" legal bull***t.

Godspeed, and good luck to anyone caught in the crossfire. This isn't going to be pretty.

Thankfully, only the directors appear to be targeted.

Formica Archonis:
Earlier 38 news posts made me shocked, or angry, or some other emotion that inspires strong opinions.

Now that it's just a bunch of lawyers squabbling over bones with a few poor saps caught in the middle, these items just make me sad.

I hope all the former 38 Studios rank-and-file employees are doing well.

Vultures gonna vult...

Okay, that doesn't sound good. But they are a-circlin'....

Pathetic... Curt Schilling starts a studio with the potential for lots of new jobs and a gaming studio and the Rhode Island Economic Development Corporation punishes him for it to the most petty and punitive degree.

"Silverstein dismissed some of the counts against some of the defendants and ruled that the EDC cannot seek $75 million in damages because it didn't actually lose $75 million in the transaction."

Way to encourage entrepreneurship guys.

At this point, I think Curt should be left out of this.

However, considering the salaries and spending habits of the executives... Go for it.

 

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