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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.
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."
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.
