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The defendants named in the suit include the developer's founder/chairman and ex-baseball star Curt Schilling, CEO Jennifer MacLean, former EDC executive director Keith Stokes (who oversaw the negotiations and was fired following 38 Studios' closure), and other 38 Studios executives and EDC employees/lawyers.
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 Studios’ own financial projections."
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 Studios’ 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.
"My message to Rhode Islanders is this. I know you work hard for your paychecks, and for your tax dollars to be squandered is unacceptable. The board's legal action was taken to rectify a grave injustice put upon the people of Rhode Island."
(via Gamasutra)
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