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East coast residents now have a new way to shop online. Google announced on Wednesday that it is expanding its Google Express online delivery service to a dozen states throughout the Northeast. Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia, West Virginia, Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont are all now within Google Express' delivery range.
Hearing on 38 Studios' potential lobbying violations set for next week
Rhode Island Secretary of State Ralph Mollis has issued letters to four individuals, requesting their presence in court on July 1 to determine if attempts were made to lobby lawmakers following the costly collapse of game developer 38 Studios. "Our office has been diligently investigating who, if anyone, lobbied lawmakers regarding 38 Studios," Mollis said in an official statement sent to local media outlet WPRI. "It is our goal to uncover any lobbying violations, which may have occurred without our knowledge, which is why our office has sent letters of inquiry to all parties who we feel may have been involved in lobbying activity, and may be in violation of lobbying laws." Those contacted by Mollis include 38 Studios founder Curt Schilling, former board member Thomas Zaccagnino, Keith Stokes, the former executive director of the Rhode Island Economic Development Corporation, and Michael Corso, an attorney who, WPRI claims, had "several lucrative contracts with the failed video game company." A letter obtained by WPRI, sent from Mollis to Corso, alleges that the attorney met with members of the Rhode Island General Assembly and other lawmakers on "numerous" occasions "for the purposes of influencing policy–making decisions or policy-making actions of the public corporation." Corso's lawyers, in turn, deny Mollis' claims, and demand more evidence of wrong-doing. [Image: 38 Studios]
38 Studios knew $75M loan wasn't enough to finish Project Copernicus
Emails surfacing from the legal fracas concerning 38 Studios and its loan from Rhode Island indicate that the studio knew the loan was not nearly enough to fully fund the game but decided to hide that from outsiders. 38 Studios Vice Chairman Thomas Zaccagnino allegedly sent one the damning emails, urging a few studio execs to remain mum on the financial situation: "I really do not think we should highlight the fact that we might be under-capitalized... [it] won't go over well with the staff or board." The email was in response to CEO Jen MacLean, who wrote that she was concerned that the state wasn't delivering the full $75 million from the agreement and that the project would fall short of funding because of this. One lawyer involved in both the deal and the lawsuit said that the state knew that the deal wasn't enough to fully fund: "The [EDC] Board was acutely aware that the capital needs of 38 Studios where [sic] in excess of $125MM as acknowledged in the 2010 EDC Inducement Resolution[.] The Board also knew that the net proceeds of the EDC Loan would be less than $75MM."
Rhode Island Governor signs 38 Studios settlement bill
Following successful votes in the Rhode Island Senate and House of Representatives, a bill designed to help settle the 38 Studios fiasco was signed into law by Governor Lincoln Chafee yesterday. Lawmakers hope that the bill will encourage settlements by shielding defendants from further litigation. Involved parties say that this bill will pave the way to recover as much as possible of the $90 million that Rhode Island is responsible for paying following the defaulted loan to 38 Studios.
38 Studios settlement bill clears Rhode Island House of Reps
A bill to promote out-of-court settlements for lawsuits over the collapse of Curt Schilling's 38 Studios has passed through the Rhode Island House of Representatives this week. The bill, which passed in a vote of 53-16, would protect defendants who settle from lawsuits filed by co-defendants over damages those co-defendants are found liable for. In layman's terms, the bill encourages settlements and provides a legal buffer: If a 38 Studios official settles with the state, they will not be able to seek those due damages from any other 38 Studios official tied up in legal proceedings. Now all that's left is for Governor Lincoln Chafee to sign off on the bill before it becomes law. Another bill introduced earlier this month proposes the state of Rhode Island default on the $75 million loan it provided 38 Studios. Defaulting on the loan would get Rhode Island off the hook for a $12.5 million loan payment due later this year as part of the debt left behind by 38 Studios. Last year, a similar bill proposing the state default on the loan failed to gather momentum. [Image: Joystiq]
SOE's John Smedley blames Rhode Island government for 38 Studios closure
So who's at fault for the 38 Studios debacle? It's a question that's been thrown around a lot with no clear answers. But John Smedley of Sony Online Entertainment thinks that it's a pretty clear case of the state of Rhode Island getting involved in something it shouldn't have and then backing out at the worst possible time. He stated on Twitter that having seen the game himself, it had potential and it could have been something if it had actually made it to release. Smedley agrees with Governor Lincoln Chafee that the funding deal was a bad idea and should never have taken place, but once it had taken place, it was in the state's best interest to aid the studio rather than letting it fail. Chafee's comments and naysaying for the project doomed the chances of the game getting any additional funding, ultimately shuttering the studio altogether. Despite that, Smedley also notes that in the long run it was a bad idea that should never have taken place and that SOE was approached for funding on the game and declined, which he suggests should have been indication enough for Rhode Island not to make the deal. [We've updated the title to make utterly clear that of course we (and Smed) were talking about the government of Rhode Island, not some random people in Rhode Island, many of whom obviously did not vote for said government. After the break, we've also quoted the relevant tweets, among them the one in which Smed declares that but for Chafee's actions, we'd be playing the game right now.]
Rhode Island House to vote on out-of-court settlements for 38 Studios fiasco
After a successful vote yesterday from the Rhode Island House Judiciary Committee, the full state House of Representatives is set to consider legislation next week that encourages out-of-court settlements in Rhode Island Commerce Corp.'s lawsuit against 38 Studios and its founder, Curt Schilling. The bill, which won unanimous support in the House Judiciary Committee and has already been passed by the Senate, is designed to protect defendants who settle in this case from lawsuits levied by co-defendants found liable for damages. Fallout from the collapse of the Kingdoms of Amalur: Reckoning studio has left Rhode Island stiffed on a bill that totals out to roughly $90 million; The attorney for the RICC believes this bill will provide for an increase in potentially recovered funds. In related but sad news, Schilling has revealed to ESPN that he was recently diagnosed with cancer. His statement expressed hope, with Schilling saying, "My father left me with a saying that I've carried my entire life and tried to pass on to our kids: 'Tough times don't last. Tough people do."
Proposed Rhode Island bill would default on 38 Studios loan debt
38 Studios, the now-defunct company created by former Red Sox pitcher Curt Schilling and developers of Kingdoms of Amalur: Reckoning, left a big hole of debt in Rhode Island when it went bankrupt. A $75 million loan guarantee-sized hole, to be exact. Last week, the state's legislature introduced a bill that would rid themselves of that burden. According to an Associated Press report, Representative Karen MacBeth, D-Rhode Island, introduced a bill on Thursday that would cause the state government to default on the loan and thus prevent the Rhode Island Commerce Corp. from making any further payments toward it. Governor Lincoln Chafee argued that a default would harm the state's financial reputation and cause an increase in borrowing costs. This isn't the first time such a bill has been introduced; the AP also reports that an attempt to default on the 38 Studios loan failed last year. The state made a payment of $2.5 million in 2013, but the next payment is substantially larger: $12.5 million. And thus, the legacy of 38 Studios continues to be defined by messy financial arguments.
Rhode Island senate passes 38 Studios legislation
A major hurdle in paving over the bad feelings, poor decisions, and millions of dollars in unpaid loans that 38 Studios caused when it defaulted two years ago has been crossed, as Rhode Island's Senate has approved legislation to settle the affair out of court. The Senate unanimously passed a bill to shield from future lawsuits any party that settles with Rhode Island Commerce Corp. The RICC, formerly the Economic Development Corp., has been trying to figure out a way to recoup as much of the $90 million lost through former 38 Studios deals as possible, and the attorney for the state says that this legislation will increase any future recovery of those funds. The Rhode Island House of Representatives has to consider and vote on a similar bill for this to proceed. Lawyers say that the longer this case goes without a settlement, the larger the legal bills will be, which will diminish those funds the state does recover.
Legislation may pave a path for 38 Studios case settlement
Amazingly enough, the 38 Studios saga could be wrapped up soon if lawyers and the Rhode Island government agree on a path out of the legal swamp. The Associated Press is reporting that efforts are being made to settle the 38 Studios lawsuit out of the courts. Rhode Island's lawyer is encouraging the state senate to pass legislation allowing both sides to come to a settlement, as the remaining 38 Studios assets and resources are "being eaten up very rapidly." The state is suing Curt Schilling and 13 others over the $75 million loan that 38 Studios defaulted on back in 2012, looking for repayment plus additional compensation for damages. If the legislation passes and a settlement is reached, then the defendants would be protected from any further claims for compensation.
Legislation introduced to resolve 38 Studios lawsuit
The ongoing saga of 38 Studios and the state of Rhode Island continued on Wednesday courtesy of Governor Lincoln Chafee introducing a new piece of legislation to the state assembly. Specifically targeting the ongoing lawsuit, the legislation would be used as an inducement for the former company to settle with the state out of court rather than go through the lengthy process of a trial by ensuring that the named defendants will not face further litigation on the same causes. In more conversational terms, the bill states that if the defendants in the lawsuit settle out of court, they cannot be sued again in Rhode Island courts by other people over the closure of the company or other similar charges. Whether or not this will provide sufficient incentive for Curt Schilling and the other 13 defendants named in the lawsuit to simply settle remains to be seen.
Project Copernicus remains unsold at auction
Every game has its fans. Project Copernicus never launched and was never really much more than a twinkle in the eye, and yet someone out there really liked the game. Someone out there really loved Kingdoms of Amalur and was really hopeful that the 38 Studios property auction would give Project Copernicus a new home. Someone was still excited despite everything that's happened since the game was first announced. Let's call her Kate. Today's news is going to hit Kate really hard; the auction came and went, and no one was interested enough in Project Copernicus to make an "acceptable" offer. Richard Land, who handled the asset auction, has stated that he will continue to try to work privately with interested buyers regarding the assets that were not purchased, but it's not a good sign that none of the potential buyers wanted to pick up the title. Sorry, Kate. Gross proceeds from the auction came to $320,000, for the record.
Big Huge Games' assets fetch $320k in 38 Studios auction
The Big Huge Games side of this week's 38 Studios intellectual property auction has been sold for $320,000.00. The two lots sold off were for the trademark of Big Huge Games as well as the Rise of Legends and Rise of Nations properties. It is not currently known who the properties now belong to, though the auction drew the attention of 20 interested parties, five of which actively participated in the conference call for the auction. As for 38 Studios' in-development MMO set in the Kingdoms of Amalur universe Project Copernicus and social media and gaming platform Helios, the court-appointed receiver for the assets Richard J. Land did "not receive acceptable offers for the remaining lots," and "intends to continue to engage in negotiations with interested parties." Sources involved in the bidding process told Joystiq there were legacy issues with both the "Rise of" and Amalur intellectual properties, particularly with their former publishing partners Electronic Arts (Kingdoms of Amalur: Reckoning) and Microsoft (Rise of Nations, Rise of Legends). Even if the properties were purchased, the buyers would still need to deal with some terms made during the original agreements.
Complete, unreleased Rise of Nations game found among 38 Studios' goods
When 38 Studios' intellectual properties are auctioned off by the state of Rhode Island on December 11, one more game will be included in the mix, Rise of Nations: Tactics. The Mac game was completed, albeit unreleased and seemingly unheard of until now. The auction was first slated to begin this week and includes the Kingdoms of Amalur IP, 38 Studios' in-development MMO Project Copernicus and Big Huge Games' properties Catan, Rise of Nations and Rise of Legends. "Additionally, through the examination of the data contained on the 38 Studios servers, we have discovered a completed, but unreleased game for Mac users titled 'Rise of Nations: Tactics,'" Nick Jimenez, executive vice president of the auction host Heritage Global Partners said in a press release. "We only became aware of this game this past week through our own due diligence efforts." The intellectual property auction follows 38 Studios' closure in May 2012, and according to the court-appointed lawyer for the now-defunct studio Richard Land, potential bidders' interest in the auction has been "greater than expected."
38 Studios IP auction scheduled for December 11
Come December 11, Heritage Global Partners will finally begin selling off the intellectual property of Curt Schilling's 38 Studios. Initially slated for November, the auction was delayed due to "greater than expected" interest from potential bidders. The state of Rhode Island is hoping that this auction will allow it to recoup some portion of the $75 million it loaned 38 Studios, so it only makes sense to attract as many bidders as possible. Among the items included in the auction are sequel and licensing rights to Kingdoms of Amalur: Reckoning, rights to Big Huge Games' Rise of Nations and Rise of Legends strategy games, and "Project Copernicus" which the auction house describes as "an in-development Massively Multiplayer Online Role Playing Game (MMORPG) including a 10,000 year world history, completed character 'races' and playable 'zones.'" Full information on the auction can be found at the Heritage Global Partners website. Initial bids will be accepted as late as 5PM EST on December 4.
38 Studios asset auction may be delayed due to high demand
When companies die, their assets are sold to make back whatever money can be recovered. That's normal. But you wouldn't expect a great deal of interest in the intellectual property of a company that had worked on only two games and actually released just one of them. Apparently that expectation would be wrong; Richard Land, the attorney in charge of selling off 38 Studios' holdings, has requested that the IP auction be delayed due to greater interest than expected. For those of you who had forgotten the details, here's a recap: The sale of these assets are part of an attempt by the state of Rhode Island to recover some of the enormous losses when 38 Studios went bankrupt following a $75 million loan from the state. The auction was originally scheduled to take place November 13th to the 14th. What parties are interested in the IP remains to be seen, as do the offers that have supposedly been put on the table.
Rhode Island EDC implements tracking software following 38 Studios debacle
Following criticism of how it managed its $75 million loan to the now-defunct 38 Studios, the Rhode Island Economic Development Corporation (EDC) is implementing a new client relationship system to help employees track their interactions with businesses. The EDC's board of directors has agreed to pay $84,939 for a year of access to software from Salesforce. The related press release states the new system will help "maintain an accurate, reliable database of companies, improve response times to client requests" and "provide the ability to implement and track performance." The EDC's software plans follow the US Securities and Exchange Commission's investigation of the group's loan to 38 Studios, which Rhode Island taxpayers have already begun repaying.
Kingdoms of Amalur IP auction starts November 14, includes Rise of Nations
The 38 Studios and Big Huge Games liquidation auction will begin November 14, according to the Heritage Global Partners auction services page. Among the assets included in the auction from the state of Rhode Island are the Kingdoms of Amalur intellectual property, namely the Project Copernicus MMO that was in development at 38 Studios prior to its closure in May 2012. Additionally, buyers will be able to obtain sequel and merchandise rights and revenue for the developer's lone release, Kingdoms of Amalur: Reckoning. Other assets in the auction include intellectual property rights for Big Huge Games' properties, particularly Rise of Nations, Rise of Legends and Catan in addition to the studio's Big Huge Games Engine and 38 Studios' Helios platform. The liquidation auction begins at 9:00am ET on November 14 and ends November 15 at 12:00pm ET.
Amalur IP heads to auction this month
Rhode Island is preparing to sell the Kingdoms of Amalur IP, with a website offering its assets going live this month, 38 Studios' court-appointed receiver Richard Land tells WPRI. 38 Studios collapsed in 2012 after launching Kingdoms of Amalur: Reckoning, taking $90 million of Rhode Island taxpayer money down with it. The main piece of Amalur up for auction will be Project Copernicus, the studio's MMO-in-progress. "If someone is thinking that Rhode Island is going to sell this for millions and millions of dollars, I would have a very difficult time believing that," Joystiq News Editor Alexander Sliwinski told WPRI in a Skype interview. Land is optimistic about the sale: "The bulk of the game and intellectual property I don't believe is stale because the artwork is current, the tech used to develop the artwork is current, the concept is a current concept." Sliwinski warns that the fantastical world of Copernicus may be outdated as the industry shifts into the next generation. The US Securities and Exchange Commission is investigating the $75 million loan that Rhode Island provided to 38 Studios. Rhode Island taxpayers have already begun paying back the loan.
38 Studios loan under SEC investigation
It seems as though we can't go more than a few weeks without hearing about some new complication related to the collapse of 38 Studios and the financial catastrophe it left in its wake. This week's news comes in the form of an SEC probe into the $75 million in loan guarantees offered to the studio by the Rhode Island Economic Development Corporation. The RIEDC has secured the services of a law firm to help it handle the SEC's investigation. Further details are sparse, as the RIEDC has offered only that it "doesn't discuss ongoing matters related to 38 Studios and maintains a level of confidentiality as requested by the SEC." Strangely, the SEC investigation, which launched in early 2012, was not mentioned to investors when Rhode Island published financial documents related to a bond transaction in April of that year. According to the treasurer's spokesperson, the state's treasury was not aware of the probe at that time. The RIEDC is currently involved in a lawsuit against studio head Curt Schilling and former RIEDC members responsible for the 38 Studios deal.
