Court allows Rhode Island to sue ex-baseball star Curt Schilling over failed 38 Studios game startup

Above: 38 Studios' game

Image Credit: 38 Studios

A Rhode Island judge cleared a state agency to proceed with a lawsuit against former Boston Red Sox pitcher Curt Schilling and executives at his failed 38 Studios video game company to move forward.

That means the state’s Economic Development Corp. may get a chance to recoup some losses related to a $75 million loan guarantee that the state gave the Kingdoms of Amalaur: Reckoning developer in exchange for it relocating from Massasschusetts to Rhode Island.

Superior Court Michael Silverstein said in a 99-page decision that the state can sue Schilling, former 38 Studios executives, former EDC officials, and others because they allegedly misled the agency’s board into approving the $75 million state loan guarantee for the company. 38 Studios was making an ambitious massively multiplayer online game envisioned by Schilling, who had retired from baseball and poured his money into the company. But the studio filed for bankruptcy protection last year. That left the state on the hook for more than $100 million.

The EDC filed suit in November. An EDC lawyer told the Associated Press that he was “quite pleased” by the decision. Schilling attorney Jeffrey Schreck did not comment to the AP.

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