Report: Schilling’s 38 Studios Covered up Financial Dealings before Rhode Island Move

Documents filed at the Rhode Island Superior Court show failed developer 38 Studios was losing money before moving from Massachusetts to the Ocean State The Providence Journal reports.

An attorney for the Rhode Island Economic Development Corp. said new papers submitted to the court shows that former Red Sox star Schilling, as well as others at the company, covered up financial information misleading the state into supplying the company with $75 million in loans. According to the papers that was the amount the studio needed to proceed and develop Kingdoms of Amalur: Reckoning, their first and only game, an RPG published by EA.

Rhode Island officials as well as the EDC, which was responsible for authorising the loans, filled a lawsuit naming Schilling as well as Keith Stokes, head of the EDC at the time the company issued the loans. Also named is J. Michael Saul, the agency's former deputy director, among others.

Some of the developers at 38 Studios were subsequently hired by Epic Games to form Impossible Studios however that developer outfit was shuttered after just six months without releasing any titles.

Source: TechFlash