Rhode Island will sell 38 Studios' IP
State prepares to sell Amalur franchise, lawyer says "there is interest" in the assets; case against Schilling and other executives scheduled to begin Wednesday.
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The state of Rhode Island, which obtained 38 Studios' assets last summer after the studio went bankrupt, now plans to sell off the Amalur franchise. A lawyer for the Ocean State told the Providence Journal today that unnamed parties have come forward and expressed interest in the assets.
"Who knows what the value ultimately will be," said Richard J. Land of Chace Ruttenberg & Freedman. "But there is interest in the assets."
38 Studios' intellectual property includes drawings, designs, and other work related to its Amalur franchise. Wedbush Securities analyst Michael Pachter said in August that the Amalur IP is worth around $20 million.
No interested parties were named, and Rhode Island's legal representation was not immediately available to comment.
In addition, the Providence Journal reports that the case against 38 Studios founder Curt Schilling and other company executives will begin on Wednesday. Rhode Island sued Schilling, a former Boston Red Sox pitcher, in November over the controversial 2010 $75 million loan that brought 38 Studios to the state.
When 38 Studios went belly-up, Rhode Island was left with an estimated $130 million debt. Selling the company's IP is an effort to recover some of that deficit.
The suit contains numerous claims and opens by alleging that the defendants did not speak with the Rhode Island Economic Development Committee board when doubts about 38 Studios' sustained financial viability became known.
"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," reads a line from the complaint.
In total, the complaint includes 17 counts of alleged wrongdoing. 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.