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Arguments begin for 38 Studios collapse

Friday, 24th May 2013 06:23 GMT By Naren Hooson

A year after the closure of 38 Studios, A Rhode Island Superior Court judge has begun hearing arguments over a motion to have the case dismissed by the defendants.

Game Industry reports that an attorney for the defendents, including 38 Studios founder Curt Schilling, called the accusations specious.

A lawyer for the The Rhode Island Economic Development Corporation, which is suing 14 people and entities involved in the case, countered saying that the firm has an “avalanche” of evidence pointing to wrongdoing.

From Schilling to former RIEDC employees, banks and lawfirms, they are accused of fraud, negligence, conspiracy, larceny and more in relation to $75 million in loan guarantees given to the studio for relocating from Massachusetts. They are all said to have known or should have known that 38 Studios was not financially viable, even with the loan money.

The studio shut down months after shipping Kingdoms of Amalur: Reckoning, its first project. It is now reported that the state has found parties interested in purchasing 38 Studios’ intellectual property.

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