curt-schilling
Latest
38 Studios vs. State of Rhode Island court case begins
We'll never see Project Copernicus come to light, and for some people that's the last that needs to be said about 38 Studios. For the state of Rhode Island, however, there's quite a bit more at stake, with the state alleging that 38 Studios tried to hide its financial condition and essentially defrauded the taxpayers of Rhode Island. Opening arguments have been heard today for the case, with the 14 individual defendants seeking to have the case dismissed as completely spurious. When 38 Studios folded, that left Rhode Island in the hole for a $75 million loan. The lawsuit is seeking restitution from Curt Schilling and 13 other individuals, including former members of the Rhode Island Economic Development Corp that originally supported the loan. According to the EDC's lawyers, substantial evidence exists that this loan was based upon intentional misdirection on the part of upper management, although the defense claims these allegations are ridiculous. At this point, it's up to the courts who's in the right.
Rhode Island prepared to sell 38 Studios' Amalur intellectual property
The state of Rhode Island's last keepsake of 38 Studios – beyond a $100-million-plus loan debt – is the company's Amalur intellectual property, which it's planning to sell off shortly. The Providence Journal reports there is interest in the asset, but the lawyer in charge of the sale hasn't revealed a value. Meanwhile, a hearing in the state's lawsuit against the architects of the 38 Studios loan is scheduled for this Wednesday, after studio founder and former Boston Red Sox pitcher Curt Schilling was unable to get the suit dismissed in March. The sale of the studio's physical assets net the state approximately $830,000. Following the sale of the IP, Rhode Island tax payers will have to pay off the rest of the debt.
Rhode Island selling 38 Studios' game assets
Do you have a few million on you and a desire to preserve some gaming history? Then pick up the phone and call Rhode Island, as the state is getting ready to sell 38 Studios' assets, including its games. The state is looking to recoup some of it $130 million debt that it fell into once 38 Studios went belly-up. One of Rhode Island's lawyers says there "is interest" in the studio's assets, including concept art, design documents, and computer software. The sale of 38 Studios' IP includes the Amalur franchise, which encompassed the Project Copernicus MMO. The state is also set to begin a lawsuit this week against former 38 Studios execs, including founder Curt Schilling. The suit claims that the executives did not inform the state when they knew that the studio would have a hard time keeping afloat financially. Schilling has asked the judge to dismiss the suit.
Yep, it's more 38 Studios drama
Ah, 38 Studios. What would we do without the dried husk of your long-dead corpse to kick around the sanctified halls of American journalism, both actual and gaming? The latest drama from Curt Schilling's former studio comes courtesy of the New York Times, which reports on Rhode Island governor Lincoln Chaffee's latest attempt to distance himself from the fiasco surrounding 38's inability to pay back state loans. "I had so many reservations about this being a bad deal, that I was reluctant to micromanage, to have it be 'Chafee screwing this up,'" he told the Times. "And don't forget, we had our hands full in this state."
Rhode Island attempting to default on 38 Studios' debt
The AP is reporting that Rhode Island is attempting to default on the debt it owes for 38 Studios' $75 million loan and subsequent bankruptcy. The state has a proposal before lawmakers that would keep it from having to make any payments to bond holders. Supporters of the move to default say that the insurance company will compensate bond holders, while the EDC, which approved the loan, says that defaulting will hurt future project and bond ratings. One lawmaker and default proponent, Rep. Charlene Lima, said that the 38 Studios fiasco harmed the reputation of the state and constricted its future economic development. The proposal is being opposed by Governor Lincoln Chafee, who wants to see the debt repaid.
38 Studios may have 'actively masked' its financial hardship
Just when you thought the world might let the wound where 38 Studios and Kingdoms of Amalur were ripped from your heart heal over, along comes some new drama. Max Wistow, the lawyer for the Rhode Island Economic Development Corporation, filed documents on behalf of the state claiming that 38 Studios needed more than $75 million in loan guarantees before the company ever moved to Rhode Island. He argues that folks at 38 Studios knew that the funds they were receiving from the state would be insufficient. The company netted about $50 million from an EDC bond sale, and Wistow is claiming "crushing evidence" that 38 Studios actively masked its financial shortfall.
Schilling asks judge to throw out lawsuit over $75 million loan
Curt Schilling, founder of defunct 38 Studios, asked a judge to throw out The Rhode Island Economic Development Corporation's lawsuit that alleges Schilling and studio executives misled the agency in securing a $75 million taxpayer-guaranteed loan. The lawsuit accuses Schilling and his crew of fraud, racketeering and conspiracy.Schilling's lawyers filed documents on Friday to Superior Court Judge Michael Silverstein, asking him to throw out the lawsuit. The documents claim Schilling and other board members repeatedly disclosed 38 Studios' financial situation to the EDC, and that the EDC knew $75 million wouldn't be enough to finish its MMO, Project Copernicus."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," the filing reads.
Curt Schilling asks judge to dismiss 38 Studios fraud lawsuit
Let's assume for a moment that you're Curt Schilling, formerly of the Red Sox and formerly of the now-defunct 38 Studios. You're facing a massive lawsuit for fraud regarding a $75 million loan from the state of Rhode Island. What do you do? It appears that Mr. Schilling's first approach is to ask the judge on the case to throw out the case entirely, claiming that the basis of the case is itself fraudulent. The crux of the lawsuit is the state's claim that Schilling and the 38 Studios board of directors willfully obfuscated the company's status from state lawmakers. Schilling has put forth that 38 Studios fully disclosed its status to the state investors on numerous occasion, providing them with an accurate picture of the company's financial situation. Due to this disclosure the allegations of fraud and obfuscation are simply not possible, hence the request for dismissal. Schilling goes on to claim that the entire suit is politically motivated and that the company's failure is chiefly due to Governor Lincoln Chafee not doing enough to save 38 Studios from bankruptcy.
38 Studios debt to be partially repaid with bloody sock
In 2004, Curt Schilling ignored his doctor's advice and hobbled to the pitcher's mound with a wounded right ankle to win Game Two of the World Series, clenching the second of four straight victories against the St. Louis Cardinals and proving that the Curse of the Bambino had run its course. The blood-stained sock worn by Schilling on that day is now stuff of Boston legend and had become quite an icon during the series. It seemed to be a piece of memorabilia that Schilling wouldn't dare part with, but his recent business dealings have forced his hand. And foot. If you find yourself in need of a used bloody sock to frame in your sports den, you can start the bidding on February 4th. Schilling hopes to raise at least $100,000 through the auction.
A video retrospective on 38 Studios discusses 'star-struck legislators'
The sun has set on 38 Studios, but there's still a lot of people eager to analyze and dissect the company's rise and sharp decline. As a whole, it's been looked at and analyzed extensively from the gaming side, but the other factors that went into the studio's enormous state loan and subsequent burnout are examined more closely in a new video. This isn't about whether or not Project Copernicus would have been any good; this is about simple business and political pressures that doomed the project from the start. Curt Schilling started 38 Studios at the end of his baseball career, but it was a well-known fact that his attempts to court venture capitalists were unsuccessful. The video goes into depth regarding the political climate that encouraged Rhode Island legislators to sign the historic and ill-advised loan, as well as the factors leading to the company's ultimate demise. If you're interested in a broader view now that the smoke has cleared, take a look at the full video past the cut.
Events 2012: 38 Studios
38 Studios was the video game story of the year with mainstream appeal. Much of that mainstream appeal had to do with Curt Schilling, the former baseball player for the Boston Red Sox who went on to found his own video game studio. But the story was way more than Schilling.The state of Rhode Island and its taxpayers were on the hook for a $75 million loan given to the studio as part of an economic development deal. As the video game industry in the US works toward tax incentives to stop the slow brain drain to the north, the very public collapse of 38 Studios and its relationship to the government is exactly what those working on industry tax breaks – especially in neighboring Massachusetts – did not need. 38 Studio is a saga, but we've selected a couple pieces to highlight here that took place in the middle of the studio's collapse and its aftermath. 'Editorial: 38 Studios and the Dunkin delusions.' As evidence mounted against 38 Studios' survival, Alexander Sliwinski took a post at the Dunkin Donuts across the street and listened. The TV Stuff: News Editor Alexander Sliwinski appears on WPRI's Newsmakers to discuss 38 Studios as part of roundtable. Sliwinski on WFXT on day of studio layoffs. The 38 Studios auction closes down studio, grossed approximately $650,000.
Rhode Island EDC sues Curt Schilling and more over 38 Studios loan
Back in May, Project Copernicus developer 38 Studios became embroiled in the controversy of the year when the studio officially shut down and fired all 379 of its employees. The story quickly turned political as the studio had been granted a loan of $75m US by the state of Rhode Island and it became known that the tax-paying public could be hit for an estimated $150.7m US due to the studio's closure. The story of mishandled taxpayer money has played a big part in the politics of Rhode Island. Today that story developed further as the Rhode Island Economic Development Corporation (EDC), which granted the original loan and may therefore be responsible for the public debt, filed a lawsuit against the people who created the deal. The defendants named in the case include 38 Studios founder Curt Schilling, CEO Jennifer McLean, former EDC executive director Keith Stokes, Wells Fargo Securities and even Barclays Capital. Rhode Island Governor Lincoln Chafee released a public statement about the lawsuit on YouTube.
Architects of 38 Studios' $75M loan sued by Rhode Island EDC
The Rhode Island Economic Development Corporation (EDC), the quasi-public group that granted the $75 million taxpayer-guaranteed loan to 38 Studios, has filed a lawsuit against the architects of the 2010 deal. WPRI reports the defendants include 38 Studios founder Curt Schilling and CEO Jennifer MacLean, former EDC executive director Keith Stokes, Wells Fargo Securities, Barclays Capital and many, many more."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," said Governor Lincoln Chafee in a prepared two-and-a-half-minute statement posted on YouTube (found after the break, with text transcript).The full complaint [PDF] alleges the former EDC board never ordered an independent assessment of 38 Studios' capabilities to finish Project Copernicus before the loan was approved, even though it was to do so. It also claims Wells Fargo received nearly $500,000 "in hidden commission from 38 Studios" that weren't disclosed to the EDC board.The recent public auction at 38 Studios' former Providence HQ grossed approximately $650,000. The auction at 38 Studios' Big Huge Games division in Maryland brought in $180,000. It's estimated 38 Studios owed $150.7 million when it declared bankruptcy, so far the state of Rhode Island has recovered about $830,000.Update: We got in touch with Law of the Game attorney Mark Methenitis to boil down exactly what Rhode Island is seeking in the suit. We've placed his analysis after the break.
38 Studios auctions recoup $830k of $150.7M owed
Earlier this week, 38 Studios' former headquarters in Providence, Rhode Island played host to a public auction that brought in approximately $650,000 through over 1,000 bidders. If you combine this number with last week's auction at the studio's Big Huge Games division, the total recouped through auctions came to $830,000. This is unfortunately only a fraction of the estimated $150.7 million owed in bankruptcy filings, but the best part hasn't been put up on the block yet. The Kingdoms of Amalur intellectual property is said to be "sold in a negotiated transaction over the next three to six months," according to Joystiq. The total from that sale doesn't expect to cover the entire amount owed, which leaves the remainder up to the Rhode Island taxpayers.
38 Studios auction had 1,000 registered bidders, sold 95% of items
The public auction held yesterday at 38 Studios' former headquarters in Providence, Rhode Island, sold approximately 95 percent of the items available. A gross sales figure for the auction is expected later today.According to a representative for the Rhode Island Economic Development Committee, the quasi-public agency that loaned 38 Studios the $75 million at the heart of the auction, there were over 1,000 registered participants for the auction. The auction had about 600 online participants and over 400 in-person, who had to front a $100 refundable deposit to enter the building.The auction activities ran until 10PM last night, after starting an hour after the planned 10:30AM opening to accommodate the number of people who wanted to get in. There is the chance of another live auction to handle unsold items, which could include "more computers, servers, office furniture, etc."Not up for auction yesterday was the Kingdoms of Amalur intellectual properly, which is the item Rhode Island is hoping to recoup the most return from its failed investment."I anticipate that the IP will be marketed and sold over the next three to six months," attorney Richard Land, the court-appointed receiver who organized the auction, told Joystiq. "Although the process is not yet set in stone, it is unlikely that it will be a traditional auction as you saw yesterday; more likely to be a negotiated transaction."Last week's auction at 38 Studios' Big Huge Games division brought in $180,000. According to the 38 Studios bankruptcy filings, as reported by the AP, the company owes $150.7 million and has assets estimated at $21.7 million.
Curt Schilling might pay back debt by selling baseball memorabilia
Curt Schilling is most recently famous for failing spectacularly at using loans from Rhode Island and investors to create a Kingdoms of Amalur MMO. As the founder of the now-bankrupt 38 studios and someone who personally guaranteed some $12 million worth of loans related to the studio, Schilling's lucky that he was famous for other stuff before stepping into game development. For example, Schilling was one of the best pitchers in American League baseball in 2004 and played for the Boston Red Sox, the only team in MLB history to win a seven-game series after losing the first three games. A bloody sock that he wore during that series is listed (along with World War II-era memorabilia, one of Lou Gehrig's baseball caps, his home, and a stake in a private equity firm) in a collateral filing.
38 Studios will face no federal criminal charges
Bankrupt gamemaker 38 Studios will not face federal criminal charges, according to a report in The Washington Post. U.S. Attorney spokesman Jim Martin told The Associated Press that his office found that 38 Studios did not break any federal laws. That said, what's left of the company is still subject to an investigation being conducted by Rhode Island police to determine whether state laws were violated. 38 Studios folded last May despite a $75 million state loan guarantee. The bankruptcy left Rhode Island "on the hook for more than $100 million," which includes the bonds and interest.
38 Studios assets to be auctioned off in October
After a series of misfortunes, 38 Studios closed down last May and then filed for bankruptcy in June. Next month, the assets of the company that was working on the MMO known as Project Copernicus will be auctioned off. The auctions -- scheduled for October 16th and the 23rd -- will include office furniture and equipment, TVs, audio recording equipment, graphic design and animation equipment, computers, servers, and more. Currently listed in the assets are XBox 360 Development Kits, which Microsoft is requesting be removed since they are the property of Microsoft and not 38 Studios.
Rhode Island can't auction off 38 Studios' Xbox dev kits, says Microsoft
Microsoft is requesting Rhode Island return the Xbox developer kits the state is attempting to sell at auction to recoup losses from the defaulted multi-million dollar loan to shuttered 38 Studios. In the listing of items up for bid October 23, the firm hired to facilitate the auction lists "Gaming consoles: Xbox 360 XDK consoles." Only problem is those belong to Microsoft."Xbox 360 Development Kits (XDK) are the property of Microsoft and are only licensed to authorized studios and may not be assigned or sold to any third party without the written consent of Microsoft," the company told Joystiq in a prepared statement. "We will be contacting the appropriate parties involved in the auction of 38 Studios' assets to remove the XDK units from the auction listing and to secure the return of the consoles to Microsoft."SJ Corio Company, a commercial-industrial auction and liquidation company, will hold auctions in Maryland and Rhode Island on October 16 and 23, respectively. Lot listings and photo galleries of items will be posted soon, according to a company representative. Part of the long list of items up for auction are computers, audio and video equipment, consoles and peripherals, pool table, ping pong table, GE side by side stainless steel refrigerators and a video game library.
Fallen kingdom: 38 Studios' collapse and the pitfalls of using public money to support tech companies
In a career filled with many clutch throws from the baseball mound, former Boston Red Sox ace Curt Schilling's main calling card was a gutsy post-season performance made even more memorable by a blood-soaked sock. It was a pitch made by Schilling outside of Major League Baseball, however, that would prove to be his most daring one yet. In 2010, Schilling convinced Rhode Island officials to give his video game company, 38 Studios, a $75 million loan guarantee. A self-professed fan of massively multiplayer online role-playing games (MMORPG), Schilling's dream was to create a worthy competitor to Blizzard's MMORPG juggernaut, World of Warcraft. In 2006, Schilling started Green Monster Games, which was later renamed 38 Studios. Luring the company away from Massachusetts was supposed to bring in more than 400 jobs and serve as the linchpin for launching a new tech-based industry in Rhode Island. Instead, the state's taxpayers found themselves left at the table with a multimillion-dollar tab.
