SEC launches investigation into Rhode Island's 38 Studios deal

A new chapter has been opened in the ongoing case involving defunct Kingdoms of Amalur: Reckoning developer 38 Studios.

WPRI reports that the United States Securities & Exchange Commission is investigating the controversial $75 million taxpayer-backed loan from the Rhode Island Economic Development Corporation that brought 38 Studios to the Ocean State in 2010.

It is not clear what specifically the SEC is investigating with regard to the deal. Neither the SEC nor the EDC would provide specifics on the investigation.

An EDC representative told WPRI that the group had retained lawyers to handle the investigation and that it "doesn't discuss ongoing matters related to 38 Studios and maintains a level of confidentiality as requested by the SEC."

Rhode Island is suing Schilling and other former 38 Studios executives over the failed company. This lawsuit is ongoing.