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Official withdraws from secondary 38 Studios lawsuit, fallout from bankruptcy continues

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Posted on July 14, 2014 AT 11:55am

The fallout from 38 Studios’ bankruptcy and subsequent lawsuit from the state of Rhode Island became a little clearer today, as one of the defendants removed himself from a secondary lawsuit.

Last week, former executive director Keith Stokes and deputy director J. Michael Saul of the Rhode Island Economic Development Corporation were busy in the courtroom. First, they filed a motion to block a settlement between the state of Rhode Island and one of the 14 defendants being sued by the state for the $75 million it is now owed in the wake of 38’s folding.

They also filed a lawsuit themselves against two of their co-defendants, Antonio Afonso Jr. of the Moses Afonso Ryan Ltd. law firm and Robert I. Stolzman of the Adler Pollack & Sheehan P.C. firm, blaming the firms and their lawyers for failing to advise them properly when the loan first came across their desks, helping start the chain of events that led to this hullabaloo.

Stokes has since decided to withdraw from this secondary lawsuit, however, saying in a statement “…it was clear that it was going to be a distraction to the main lawsuit, and I cannot devote the very limited resources I have to prosecute the litigation.”

Meanwhile, J. Michael Saul’s lawsuit against Afonso and Stolzman is still active.

Much of this started back when 38 Studios put out Kingdoms of Amalur, a fantasy RPG that has since become the poster child for not putting all your eggs in the singular basket of your freshman project. While well received amongst critics, the game did not sell well and quickly after it’s release, the studio founded by former MLB pitcher Curt Schilling closed down in 2012.

Doing so made it forfeit on a $75 million dollar loan it had been granted in 2010 by the state of Rhode Island, which quickly made moves to try to reclaim as much of its money as possible and set in motion all these legal proceedings.

Source: Providence Journal

Ray Carsillo, Reviews & Previews Editor
Ray Carsillo has extensive roots in geek culture, as he’s written about video games, comics, and movies for such outlets as Newsday.com, ESPNNewYork.com, Classic Game Room on YouTube, Collider.com, and Comicvine.com before finally settling into EGM as reviews & previews editor. His main goal in life? To become king of all geek media, of course! Follow Ray’s exploits on Twitter: @RayCarsillo. Meet the rest of the crew.

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