Rhode Island Says 38 Studios Mislead State
In new documents filed as part of the state of Rhode Island's lawsuit against 38 Studios executives, including baseball great Curt Schilling, the state's attorney claims that there is "crushing evidence" that 38 Studios intentionally misled the state.
The suit is over a $75 million business development loan made to 38 Studios by the state of Rhode Island, which was backed with taxpayer money. After 38's Kingdoms of Amalur: The Reckoning failed to recoup its investment, the studio quickly fell into disarray and bankruptcy.
Now, Rhode Island Economic Development Corp. lawyer Max Winstow said that 38 Studios executives knew "before they moved here" that the studio did not have enough money to finish its projects, including an ambitious MMORPG set in the Kingdoms of Amalur world.
According to Gamespot, the state is suing former 38 executives for "17 counts of alleged wrongdoing against 38 Studios. These include counts of fraud, unjust enrichment, civil conspiracy, breach of implied covenant of good faith and fair dealing, negligence, legal malpractice, negligent misrepresentation, fraudulent misrepresentations and omissions, and breach of fiduciary duty."