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Officials seek to block settlement in 38 Studios case

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Posted on July 8, 2014 AT 01:55pm

The state of Rhode Island, looking to salvage some of the $75 million dollar loan it lost when former superstar MLB pitcher Curt Schilling’s 38 Studios went under in 2012, may have to wait a little longer for any sort of recuperations.

When 38 Studios collapsed two years ago, the state of Rhode Island quickly took the necessary steps in late 2012 to sue 14 individuals, law firms, and institutions that had ill-advised the state to loan the cash to the company back in 2010. One of these 14 defendants, the law firm of Moses Afonso Ryan Ltd., has agreed to settle out of court and pay $4.37 million from the firm’s insurance fund “to put this matter behind them” as reparation for their part in the debacle.

Two other defendants, former employees of the Rhode Island Economic Development Corporation, have now filed official paperwork to put a halt to this settlement, deeming a recently passed law that allows actions such as this as unconstitutional and “fundamentally unfair” due to the fact that insurance policies like the one that Moses Afonso Ryan Ltd. wish to tap in to are not available and cannot be relied on by individuals such as they.

38 Studios only produced one game in its short history, the well received but poor selling fantasy RPG Kingdoms of Amalur: Reckoning for Xbox 360, PS3, and PC. The shuttering of the developer’s doors was a massive scandal at the time in Rhode Island with the state immediately taking the stance it had no idea of the loan guarantee’s risks.

As is often the case when dealing with monetary amounts that have that many zeroes in them, I’m sure we are nowhere close to hearing the last of the fallout from this situation.

Source: Providence Journal

Ray Carsillo, Reviews Editor
Ray Carsillo has extensive roots in geek culture, as he’s written about videogames, 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 his role as EGM’s reviews 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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