38 Studios management knew it was in trouble before moving from Massachusetts to Rhode Island in 2010, according to recently filed documents in Rhode Island Superior Court.
Rhode Island Economic Development Corp. lawyer Max Wistow said there is "crushing evidence" that shows founder and former Red Sox pitcher Curt Schilling and other executives intentionally concealed that financial information, according to The Providence Journal.
The state contends that 38 Studios instead relied on "speculative financial projections" to operate its business.
Rhode Island sued Schilling, along with other 38 Studios executives, in November over the controversial $75 million loan that brought the game company to the Ocean State in 2010.
The state continues to argue that the defendants knew or should have known, but failed to inform the EDC Board, that 38 Studios was destined to fail based on 38 Studios' own financial projections.
In total, the complaint includes 17 counts of alleged wrongdoing against 38 Studios. These include counts of fraud, unjust enrichment, civil conspiracy, breach of implied covenant of good faith and fair dealing, negligence, legal malpractice, negligent misrepresentation, fraudulent misrepresentations and omissions, and breach of fiduciary duty.
Separately, the 38 Studios website has returned to operation today. The site at one point today contained a handful of posts--all created today--highlighted the history of Kingdoms of Amalur: Reckoning, Project Copernicus, and Green Monster Games, which would later become 38 Studios.
Schilling had not returned requests for comment at press time.