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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.
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.
Layoffs confirmed for 38 Studios, Rhode Island takes no action
If last week's Project Copernicus flythrough had been a hopeful note, the latest news out of 38 Studios is another downturn. Following a meeting today, the Rhode Island EDC board decided to take no action to help the ailing company at this time. Governor Lincoln Chafee said following the meeting that the financial situation of the studio remains unchanged from last week, but did note that the company has seen some layoffs and underwent unspecified internal shifts. Founder Curt Schilling did not directly respond to press inquiries, stating that he would answer questions when he is able to do so. He did, however, state that he was not taking further taxpayer money. Whether or not there will be a company there to take any money in the near future is still very much in doubt, however, and while Chafee has been a bit more diplomatic about aiding the studio, he has stressed that any assistance would be far on the conservative side.
