Other companies that were involved in the loan deal such as Wells Fargo Securities, Barclays Capital, First Southwest, and Starr Indemnity and Liability were also named as defendants.
The lawsuit alleges that "defendants knew or should have known, but failed to inform the EDC Board, that 38 Studios was destined to fail according to 38 Studiosí own financial projections."
Curt Schilling and others are being accused of fraud, fraudulent misrepresentations and omissions, breach of fiduciary duty, breach of implied covenant of good faith and fair dealing, negligence, negligent misrepresentation, legal malpractice civil conspiracy, violation of the state's RICO statute, and other counts.
Rhode Island is seeking compensation for the $75 million loan, including interest, costs, and attorney fees. The Governor of Rhode Island, Lincoln Chafee, originally spoke out against the taxpayer loan for the studio long before the studio went bankrupt. He made another statement today to the residents of Rhode Island about the matter.