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Tag: 38 Studios
Curt Schilling Is Running For President
If you thought presidential politics wasn’t crazy enough, just wait until you see who is stepping into the ring. Curt Schilling, former Red Sox pitcher and head of defunct game developer 38 Studios has announced his plans to run for president in 2024, or possibly in 2020 should Hillary Clinton be elected by some means (which Schilling refers to as an ‘amazingly illegal event.’). Schilling’s comments were made on his Facebook page in a discussion with another user.
Schilling has been involved in a lawsuit for the past few years after his game developer 38 Studios went belly up, leaving a bill of over $100 million in an unpaid loan on the plate of state taxpayers. The lawsuit alleged that several parties, including 38 Studios, Schilling, and Wells Fargo, were fully aware that the loan would be insufficient to cover the cost of development and hid that information from investors.
The charges against Schilling, which he has referred to as a ‘fake ass witch hunt,’ were dropped late last month. Schilling was fired from his job at ESPN after a Facebook post led to complaints over transphobic commentary.
As for this election, Schilling is backing Republican candidate Donald Trump.
“Fake Ass Witch Hunt” Against Curt Schilling Results In No Charges
The case of 38 Studios is finally coming to a close as the Rhode Island state attorney general Peter Kilmartin has declined to press charges against Curt Schilling and members of the state economic development board. According to an eight page report filed by the attorney general, there is not sufficient evidence to secure a conviction. While the decision means that no charges will be levied at this time, it does not interfere with the ongoing Securities and Exchange Commission charges levied against the state, nor does it prevent a later case being picked up should new evidence come to light.
Curt Schilling called the investigation a “fake ass witch hunt”
Former Red Sox pitcher Curt Schilling been the center of attention since the collapse of his game developer 38 Studios in 2012 and the ensuing investigation over a $75 million loan backed by the state of Rhode Island. The loan is being investigated over allegations that the parties involved knew that it would not be sufficient to complete work on Project Copernicus (the Kingdoms of Amalur MMO). The Rhode Island Economic Development Corp as well as Wells Fargo have been charged with fraud in relation to the loan.
(Source: Game Informer)
38 Studios Lenders Hit With Fraud Charges
The Securities and Exchange Commission is now involving the Rhode Island Commerce Corporation and Wells Fargo Securities, levying fraud charges against both groups in relation to the bankruptcy of former game developer 38 Studios. In its complaint, the SEC is alleging that both groups knew that the $75 million loan that brought 38 Studios to the state would be insufficient to cover their costs and withheld that information. In addition, it is alleged that Wells Fargo had a conflict of interest with 38 Studios that it should have disclosed during the loan period.
“We allege that the RIEDC and Wells Fargo knew that 38 Studios needed an additional $25 million to fund the project yet failed to pass that material information along to bond investors, who were denied a complete financial picture.”
-SEC Enforcement Division Director Andrew Ceresney
The SEC joins the Rhode Island Economic Development Corporation alleging fraudulent dealings in the $75 million loan given to 38 Studios for the now-defunct game Project Copernicus. 38 Studios went bankrupt in 2012 after releasing their game Kingdoms of Amalur, leaving state taxpayers on the hook for $115 million in unpaid principal, interest, and fees associated with the loan.
(Source: Providence Journal)
$12.5 Million Deal Reached In 38 Studios Lawsuit
In what is certainly not the final chapter to the long and twisted story of 38 Studios, Curt Schilling, and Kingdoms of Amalur, Rhode Island has announced a $12.5 million settlement with four more defendants from the original lawsuit. To the unfamiliar, 38 Studios headed by former Red Sox pitcher Curt Schilling relocated to Rhode Island on the promise of a $75 million state-backed loan to create their game Kingdoms of Amalur and eventually develop an MMO. Amalur failed to sell and 38 Studios went bankrupt, making the state (ie: its tax payers) liable for paying the rest of the loan.
The state of Rhode Island filed lawsuit against a wide variety of people involved, including Schilling himself, executives, former agencies, and banks involved in the loan. 38 Studios was accused of everything from fraud, negligence, breach of fiduciary duty, and more. The settlement is supported by both sides, with the state looking to recoup what is left of the defendant’s insurance and the defendants simply seeking to end the trial.
There are still other lawsuits ongoing, including one against Curt Schilling himself.
(Source: SF Gate)
John Smedley Defends Curt Schilling
Those of you who read MMO Fallout know that I have quite a lot of respect for SOE’s John Smedley. The guy isn’t perfect and no one would doubt that there are plenty of mistakes made in Sony’s past, but the guy has a tendency to spell it out as it is and be as transparent as his corporate overlords will allow him to be. The company keeps their games going long after they are commercially viable, and even after they were no longer profitable.
Over the past few days, Smedley has taken to Twitter to defend 38 Studios and Curt Schilling, stating that Schilling’s “only crime was believing in his own ability to will things to be better,” adding that “he busted his ass to get funding.” He then goes on to state that Sony Online Entertainment was approached by 38 Studios for funding, but did not jump on board because the game was deemed too expensive and risky. He went on to say that the fact that no other company was willing to get on board should have been the first warning sign to Rhode Island not to go through with the deal. Public funds, says Smedley, should never go to back something as risky as an online game.
Rhode Island is set to vote today on encouraging out of court settlements against Schilling and those who drafted the loan.
(Source: Gamespot)
38 Studios Lawsuit Will Continue
Curt Schilling’s 38 Studios may go down in history as one of the worst managed video game companies, but history hasn’t yet finished with the developer or its executives. The last we heard, the state of Rhode Island was still intent upon bringing a lawsuit against the former Red Sox pitcher and news commentator as well as the executives of the failed game developer. The Associated Press is now reporting that a judge has ruled in favor of the state, allowing them to go ahead with most of a planned lawsuit.
The lawsuit in question accuses Schilling and his executives of fraud, negligence, breach of fiduciary duty, among other acts, misleading the state into approving a $75 million loan. Last year, 38 Studios went bankrupt to the tune of more than $100 million, leaving the bill to be paid by the taxpayers of Rhode Island. The judge declared that the state could seek financial damages for fees and salaries collected by the defendants, damage to reputation and credit, but could not seek damages on the bonds issued until the money had been spent.
Schilling has maintained that the lawsuit is purely political and that the developer had no intention of wrongdoing when it sought the loan and that Rhode Island was well aware of the risks of investing in the game developer.
(Source: Associated Press)
Curt Schilling Sued For $2.4 Million
Citizens Bank is not happy with Curt Schilling, because the company is suing the ex-Red Sox player personally for $2.4 million. Schilling is being sued under allegations that he promised to personally repay the money that had been borrowed from the bank. According to the lawsuit, Curt Schilling had personally guaranteed a $2 million line of credit as well as a $350,000 credit card, both of which 38 Studios and Schilling have refused to pay.
38 Studios is currently under investigation by the State of Rhode Island and the Federal Bureau of Investigation over the $75 million in loans that Rhode Island taxpayers are now on the line for.
“Schilling is liable to the bank in the total amount of $2,394,240.40, plus thereafter accruing interest and late fees, costs and costs of collecting, including, without limitation, attorneys’ fees and expenses.”
Citizens Bank has requested that Schilling’s assets be frozen, claiming that the company would be unlikely to recover any money in bankruptcy court.
Undoubtedly far more into the 38 Studios story will be revealed as ongoing lawsuits and investigations continue.
(Source: WPRI.com)
38 Studios Being Investigated
It appears that dead horses just can’t go unbeaten. Not to anyone’s surprise, but 38 Studios (amidst layoffs and defaulting on payments) has formally declared bankruptcy and the story of Project Copernicus can finally come to an end, no? Wrong.
According to the Providence Journal, Col. Steve G. O’Donnell of the Rhode Island State Police made a statement that his agency, along with the FBI, US Attorney General, and the Rhode Island Attorney General are in the process of investigating 38 Studios due to activities that have recently come to light, according to the statement. The report doesn’t go into any more details.
O’Donnell was referencing the $75 million loan to 38 Studios as well as another $8 million loan from Bank RI from earlier this year.
So it seems the lid isn’t closed on 38 Studios just yet.
(Source: Providence Journal)
NCSoft Holding Interviews in Providence
NCSoft just posted a notice that they will be holding interviews on May 31st from 9am to 7pm at Providence Biltmore. All applicants are welcome, especially 38 Studios (and presumably Big Huge Games) ex-employees.
MMO Fallout 