Kingdoms of Amalur developer 38 Studios Sued by Rhode Island
Seems like 38 Studios can’t catch a break. First, the company collapses and now Rhode Island is suing the fallen studio for the $75 million loan that was given to them. According to WPRI, a suit has been filed against Curt Schilling who is the founder of 38 Studios (he also lost his entire Baseball fortune thanks to the shutdown). Former EDC executive Keith Stokes, 38 Studios CFO Richard Wester, CEO Jennifer MacLean and 38 Studios board member Thomas Zaccagnino have also been charged with a lawsuit.
Whether you call this irony or fate, news of the lawsuit comes 24 hours just before the two year anniversary mark of the original deal with 38 Studios which started on November 2, 2010. Assets of both 38 Studios and Big Huge Games (owned by 38) have been sold for $830,000 earlier this month. The only problem is that Rhode Island taxpayers are now responsible for the millions of dollars the state still needs to reclaim.
Rhode Island Governor Lincoln Chafee stated that the decision to sue “was not taken lightly and it was taken with the clear goal of protecting the taxpayers of Rhode Island.”
“My message to Rhode Islanders is this,” Chafee said. “I know you work hard for your paychecks, and for your tax dollars to be squandered is unacceptable. The board’s legal action was taken to rectify a grave injustice put upon the people of Rhode Island.”
The lawsuit goes on to say “38 Studios failed because of risks that had not been disclosed to the EDC board, but were or should have been known by all of these advisors, and by 38 Studios, and defendants Schilling, Zaccagnino, Wester and MacLean.” Going even further, it states that 38 Studios was “undercapitalized by many millions of dollars” and did not say the company “was likely to run out of money in 2012.”
If you want to read the full complaint, click on the link here