After four years of financial turmoil, Curt Schilling has agreed a preliminary settlement with Rhode Island state following the bankruptcy of Kingdoms of Amalur developer 38 Studios in 2012.
Alongside three co-defendants, Schilling—a former US baseball player—has agreed a $2.5 million deal which, assuming the court agrees it, will mean Rhode Island has recuperated $45 million in litigation against 38 Studios. This is against the $75 million loan the quasi-public agency Rhode Island Economic Development Corp. (now known as Commerce Corp.) granted the studio in 2010.
After failing to meet a hefty state loan repayment in 2012, the Kingdoms of Amalur developer laid off its entire workforce and was forced to declare bankruptcy, which is what prompted court proceedings in the first place. In essence, this left the taxpayer to foot the substantial bill and as a result of the ensuing financial turbulence, 38’s sister studio, Big Huge Games, later fell as well.
To muddy the waters further still, the US Securities and Exchange Commission charged the Rhode Island Commerce Corporation and Wells Fargo—one of the banks that worked on the bond offering—with defrauding investors earlier this year. 38 Studios was itself cleared of criminal charges following four years of investigation, however Polygon reports $28.2 million still hangs over the taxpayer.
Thanks, Boston Globe; Polygon.
