Curt Schilling asks judge to dismiss lawsuit over $75 million loan

Former Boston Red Sox pitcher and 38 Studios founder asks Rhode Island judge to toss out suit brought against him by state.

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Lawyers representing former Boston Red Sox pitcher and 38 Studios founder Curt Schilling on Friday asked a Rhode Island judge to dismiss the lawsuit filed against him and other executives of the now-defunct game studio, reports the Associated Press.

Image credit: Steven Senne, AP

The Rhode Island Economic Development Corp. (RIEDC) sued Schilling and other executives last year, claiming they misled the agency and committed fraud, racketeering, and conspiracy. Schilling calls these claims "implausible," according to the court documents.

The state's lawsuit was in response to a $75 million 2010 loan that brought 38 Studios to Rhode Island from Massachusetts. 38 Studios filed for bankruptcy last summer and is now due to pay the state around $100 million with interest factored in.

Schilling's filing, however, seeks dismissal of the suit on the grounds that 38 Studios did disclose the company's financial needs to the appropriate state officials. The filing also states that it cannot be proven that 38 Studios knowingly made false statements to the RIEDC.

Schilling recently sold one of his famed bloody socks at an auction for $92,613.

Discussion

201 comments
CaptWaffle
CaptWaffle

I feel bad for Mr. Schilling.  He tried to build something huge from the ground up and ending up losing a LOT of money.  He'll still get paid good from his TV spots on ESPN, but he's got a kid with Autism and that can get REALLY pricey.  Trust me, I know. 

Gravity_Slave
Gravity_Slave

You're really reaching for news stories Eddie.  Here's whats next:

"Janitor at Blizzard HQ calls in sick: no toilent paper in dev's mens room"

cards
cards

Should have never gave a loan like that to a loser like Schilling. This is the guy who buds up with glen beck. That should have told them everything about that coward.

N0tYrBeezin
N0tYrBeezin

Schilling needs many more pairs of those bloody socks to get out of this one!

blackace
blackace

Well, the state should have never funded it to begin with. Using tax payers dollars to have a game studio more to R.I. was just dumb. I could see if the Super Bowl or NBA All-Star weekend was going to be there. It's really R.I. governments fault. The case probably should be thrown out as it was an invested that didn't pan out.

nigelholden
nigelholden

That's like one million dollars per hour I put into that game.  I feel special.  

Takeno456
Takeno456

The state made a bad investment and the business failed. Unless they can prove fraud then I would say toss it out. With the way the government seems to attack and not understand video games they are the last people I would ask a loan from if I was making a game.

Riddick123
Riddick123

Bad decision by both parties imo.

blackothh
blackothh

i dislike government more then video games, i say throw the case!

FlashCharge
FlashCharge

Rhode Islands lawmakers made a bad investment in their attempt to score big. Now they're crying! Schilling tried to live a dream and it turned into a nightmare. They both lost!

ZetA_LatA
ZetA_LatA

Most of the time people can't get out of traffic tickets, but tens of millions of taxpayer dollars lost in a bad investment? Yeah, lets just slap those wrists and send you on your way. Don't like it, but when you go balls to the wall on something you better be ready to face some sort of consequences if your luck turns sour.

Vojtass
Vojtass

One of 38 Studios guys moved to Poland and now he works on The Witcher 3 as audio-lead. :)

Dragon_Nexus
Dragon_Nexus

I 'unno, maybe they were given a very convincing business plan that suggested if the game was well managed and kept within budget they could stand to make money from it.


Just a shame the game was completely mismanaged and turned into a money sink, requiring way more people to buy it than would be feasable in order to begin making money back.

Plus there are reports that Schilling filtered some of the money away for other projects, possibly even embezzling it for himself. The investment could have been sound if it had a better management structure around it.

SoulReaper1337
SoulReaper1337

One day EA and activision will be put in there place, until then i just hope they dont ruin too many games in the meantime.

ScreamDream
ScreamDream

I don't know the specifics but the State can't sue Curt, they have to sue the company which is already bankrupt.

Suaron_x
Suaron_x

At some point you have to start holding corporate thieves accountable for their actions, especially when they are milking the taxpayers dime.

auntbessie
auntbessie

Dem sum big numbers, imagine he don't get much sleep at night, that shitty old sock aint gonna put much of a dent in the debt let's be honest

Venge-VS
Venge-VS

He produced a good game, he just didn't do it efficiently. I don't think he is really the core one at fault.. The problem lies with the states public-private partnership in which they can give special deals or loans to a business. They're suing him for negligence and a list of other things. But I believe that the governor and many of the others in government are just as responsible for being negligent with the taxpayer's money just because they were starstruck or what-not.

It's not just the state's that are guilty of this, it's the federal government mainly. It seems morally reprehensible that the government can force you to give them your money, for your own good, and then gamble it on a terrible bet. .

BOSTONJOHN32
BOSTONJOHN32

Poor Curt.. Guy is definately a gamer, During off days while the rest of the team was clubbing, shooting roids, hanging out partying etc he would sit in his hotel room and play everquest .. Was hoping to see the "reckoning" style mmo because i enjoyed the reckoning but geeeze talk about going overboard w/ the budget. Well he gave it a shot, put a ton of his money ( and the governments :P) into what he loved and it fell through the roof, its too bad because Curt really had his heart into it but obviously he needed to spend a bit more on book keeping/financial management. *** Yourrre out !!***

Rotondi
Rotondi

Oh no you're not going to be filthy rich for the rest of your life. Join the club.

91210user
91210user

I'm getting scolded about buying too much games? someone bought his sock for over $90,000!

skullomania2
skullomania2

How do you get a 75 million dollar loan? I want to register :)

TheEveryMan
TheEveryMan

Man tried to be an entrepreneur, went into an industry he knew nothing about, and got his ass handed to him, it's as simple as that. I can only imagine how his image of making millions in the gaming world went to ash when the taxman came to his door.

ADO300
ADO300

Why do people on comments, diss kingdoms of amalur so much? The game is great. ( It's not the best RPG, but it is one of the better western rpg's i played for this gen )

SandRunneR
SandRunneR

I'm sorry for being harsh, but f**k this guy. No man, be he rich, poor, famous or whatever, should be above the law.

spindie
spindie

@CaptWaffle maybe he should have thought of this before asking to borrow 100 million dollars?

parrot_of_adun
parrot_of_adun

@Gravity_Slave So... You don't know how this news thing works, do you?

He's given stories to write up, and he writes them. That's it. If you people are incensed by stories that aren't quite face-meltingly important, then stop reading news articles. Anywhere. You'll only ever be disappointed.

HaK-ForgoTT3n
HaK-ForgoTT3n

@cards yea, a world series champion is a "loser"....you're a fucking idiot kid. keep playing games while others play pro sports...loser. =)

inebriantia
inebriantia

@Dragon_Nexus The money wasn't spent on just 1 game. The idiots for their 1st two projects were building KoA, and a huge elder scrolls type MMO. They paid tons to bring in huge people people in the industry. He just reached way too far for a 1st attempt, and hired a staff of people from the industry who just wanted to use him. RI employees have also been getting busted in having secret agendas for offering that loan. One guy was hoping to land a job with 38 after his term. Curt's just a dumbass, who got used by the industry, plain and simple. While I don't think he purposely tried to do anything wrong, I do think many of his employees/RI employees did, and he wasn't smart enough to catch them before they ruined him. Which as a boss of a company you gotta be prepared to pay the price, fair or not :(

BOSTONJOHN32
BOSTONJOHN32

@Venge-VS 

I agree, they are also trying to get hin for RACKETEERING !! ,lol. But thats how the judicial system works = they throw everything but the kitchen sink @ ya, stacking up charges on top of each other to "scare" the defendent into pleaing out to a leser charge thus dropping all the B.S ones making it feel as though one is "getting a good deal".. Nothing but a business, a 3 ring circus but a business none the less.

He didnt need to hire as many "whos who" i think he paid Todd around 1 million and maybe some royalties and this was the same for another high end name. The core was there and thats all we care about not famous names and i say this with all due respect taking nothing away from mac but geeze Curt needed someone who was able to say NO.

Hes an elite athlete as well as a gamer so im guessing his competitiveness took over in places where his sensibility shouldve been.

Lhomity
Lhomity

@SandRunneR Its a civil case. He's being sued, not charged with a criminal offense.

jenovaschilld
jenovaschilld

@JimmeyBurrows @Gravity_Slave Nah It will be, "World coming to an end and all games now cancelled..... could happend if Janitor at Blizzard takes a second sick day," 

Go to put in a catchy headline. 

cards
cards

@HaK-ForgoTT3n @cards tough crap the guys a loser just like his bud glen beck.  

Sorry to burst your bubble.

There are a number of folks who won something and turn out to be a loser. That guy just happens to be another one.   

Venge-VS
Venge-VS

@BOSTONJOHN32 @Venge-VS 

Indeed, the governor was quick to say he was uneasy about the thing from the get go, he's just there to protect the taxpayer's money, and the decision to take legal action was a very serious one.

As a politician he's very cunning at covering his hide while shifting the blame completely away from him.

SandRunneR
SandRunneR

@Lhomity You're right. My only point was that he should not get away with this. It's a thing I have against capitalists and company owners. They usualy have huge salaries which are disproportionate with the amount of work they do, but they are proportionate to the risks they take. Well, when things go bad, it's too often that they don't pay the price of failure.

CaptWaffle
CaptWaffle

@cards @HaK-ForgoTT3n 

The thing with people that hate Glenn Beck: they hate him because they know someone who said "Glenn said all babies should be disemboweled", and rather than doing your own research, you instead believe something without proof.  The ironic thing is Glenn's WHOLE DEAL is to "Question Everything" and "Do your own research and use as many sources as possible.  AND research your sources."  If you do that, you'll usually end up finding who is telling the truth and who is repeating what someone said, very much like a Parrot.  Are you happy being a Parrot, Cards?  Doing extensive research CAN be time consuming, but i'd advise you to stop repeating what random people say and instead read up on stuff yourself.  

 Another ironic point:  Glenn has more people paying $10 bucks a month to subscribe to The Blaze then MSNBC gets for ANY show.... and they can watch that for free.  Just food for thought.  (although Glenn DID get picked up on Dish Network or Direct TV.... one of the two... and more soon to follow.)

dontkillme
dontkillme

@CDWJUSTIN @rasputin177 @blackothh Yes, they should remove taxes altogether.

Venge-VS
Venge-VS

@SandRunneR 

Capitalism is good, if it were capitalism either the investors wouldn't have invested the money on a game they doubted, or they would have invested and they would have lost their personal money. Crony capitalism is what we're dealing with.

The problem is that the government has such power to hand out your money to these businesses. Although he probably got it because of his celebrity status. If a politician makes a dumb move everyone loses, if an investor makes a dumb move, then he loses on a risk he chose for himself.