After game industry failure, Curt Schilling agrees to pay back Rhode Island | Tech Industry
The long, winding saga of baseball star Curt Schilling’s massive business failure in the video game industry may finally be reaching its end. As The Associated Press reports, Schilling and other former executives at 38 Studios have agreed to pay $2.5 million to the state of Rhode Island to settle outstanding claims of defrauding the state out of $75 million in loans.
The case dates back to 2012, shortly after 38 Studios laid off all of its 379 staffers and declared bankruptcy. Though 38’s first game, Kingdoms of Amalur, sold a respectable 1.3 million copies in its first 90 days, the company’s financial resources were reportedly drained by work on an ambitious RPG project, codenamed Copernicus, which never saw the light of day (save for this teaser trailer released just before the company’s bankruptcy).
The Rhode Island government floated $75 million in bonds to provide loan guarantees that convinced 38 Studios to move from its base in Massachusetts. After the bankruptcy, though, the Rhode Island Economic Development Corporation argued in its lawsuit that the company had used false financial projections and misleading statements to obscure the fact that the company was “destined to fail according to 38 Studios’ own financial projections.”
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