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.